If relocating employees abroad or doing business in another country are a part of your company's plans, you will want to take look at the Web site of the U.S. Department of State. The agency publishes quarterly report indexes of living costs abroad that compare expenses in key international cities with Washington, D.C. They publish the data for use by private organizations in establishing compensation systems for their American employees assigned or traveling abroad.
The U.S. Department of State publishes indexes of living expenses abroad for approximately 180 locations. For most countries, they compute indexes for one location, usually the capital city. The indexes are computed for more than one post in those countries where the government pays a post allowance (i.e., cost of living allowance) and where there are significant differences in living costs among cities assigned to U.S. government employees.
Fluctuations in the indexes from one date to another reflect changes in prices at the foreign post relative to price changes in Washington D.C., and, if applicable, changes in the currency exchange rate. Housing costs are also included for a single person or a family.
The indexes of living costs abroad are calculated on the basis of price data collected at foreign posts, using a standard Retail Price Schedule, along with data similarly reported by the Bureau of Labor Statistics for the Washington, D.C. area. Price surveys are conducted annually in countries where government employees currently receive a post allowance.
The Retail Price Schedule includes prices for more than 120 goods and services for the following expenditure categories: food at home, food away from home, alcohol and tobacco, clothing, personal care, medical care, household furnishings and operations, household services (domestic help), transportation (public transportation and automobile operation), and recreation. The Web site describes in detail how they collect the data and adjust for factors such as automobile purchases and exchange rate fluctuations. The January quarterly includes all areas of information and the subsequent quarterly reports (April, July, and October) incorporate updates to the January report.
The site also contains valuable information for travelers regarding visas, passports, travel warnings, and country background notes. Found here as well are links to an array of information ranging from adoptions to wildlife pets and agriculture.
The Department of State's Cost of Living information is an invaluable source of data, whether for writing a business plan, contemplating an overseas office, or sending employees abroad on business trips. 