The cost of living index figure:
It is used in pay discussions, dearness allowances, bonuses, and other forms of compensation for workers.
The cost of living index is a metric that quantifies the change in retail prices of a set of goods and services.
It is also beneficial to the government when formulating wage policy.
It is used to calculate the change in money’s buying power and real income.
Final Answer:
Index figures are extremely useful in determining changes in the cost of living, production patterns, trade, and income fluctuations, among other things.