Cost-of-living crisis

A cost-of-living crisis refers to a situation where the price of labour (and therefore disposable income) has not risen in line with the prices of essential items like food, housing, and energy. As a result, living standards are being squeezed to the point that people cannot afford the standard of living that they were accustomed to. The population becomes poorer than it used to be in real terms. This is in contrast to a situation in which wages are rising to meet the rate of inflation and workers' standard of living remains unchanged.

As of 2023, there is a cost-of-living crisis in many countries around the world. In February 2023, 3 out of 4 consumers globally were worried about the rising cost of everyday expenses.