How does the Department of Defense know whether it costs more to live at my overseas duty station than in the States?
The Cost of Living index is based on data furnished by uniformed members assigned to each overseas location. The Per Diem, Travel and Transportation Allowance Committee uses two surveys to determine the relative cost of living: a Living Pattern Survey and a Retail Price Schedule. The Living Pattern Survey asks Service Members which local stores they shop in and how much (the percentage) they buy from the commissary and exchange. For example, the Living Pattern Survey may show that Service Members typically buy half their clothing in local stores (with foreign currency) and half at the exchange (with U.S. dollars). Using information from the Living Pattern Survey, price collectors in many overseas locations conduct a market basket survey (Retail Price Schedule) each year, pricing about 120 goods and services. The prices from each overseas survey are compared with prices in the United States for equivalent goods and services at the same point in time. If the overseas market basket cost i
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