Alceis Blog

ECA Cost of Living September 2016 survey

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Anyone involved in managing international assignee packages will know that monitoring exchange rates and cost of living is essential since currency movements can have a big impact on the value, or perceived value, of the package you give your expatriates. A cost of living allowance calculated six months ago, for example, may no longer be enough to protect the assignee’s purchasing power if the currency you are paying in has weakened during that period. Conversely, you may be overpaying if that same currency has got stronger. Key events around the world have affected cost of living indices during the ECA survey period. This should act as a useful guide when considering whether to amend assignee cost of living allowances to ensure that spending power is maintained. Inflation trends around the world have continued to diverge to extremes, resulting in unusually large numbers of countries with either very high or very low inflation. 

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