Accurate, timely cost of living data is at the core of global mobility decisions. Every survey cycle, ECA collects hundreds of thousands of prices from locations around the world using a range of carefully managed sources. In this blog, we take a closer look at how we gather that data - from trusted local sources and online outlets to contributions from expatriates - and how this multi-source approach ensures the integrity of our cost of living indices.

We use a multi-source approach that balances accuracy, resilience, and coverage. Our primary sources include local data collectors on the ground, online research, and expatriates working for our client companies. Drawing from diverse channels allows us to cross-reference for consistency and reduce bias. It also means that no matter what happens we still have trusted, up-to-date sources to rely on. This flexibility has proven invaluable, especially during periods of global disruption like the Covid-19 pandemic or periods of war and instability.

Trusted local sources

We work with a range of established local field research partners and data collection networks in locations worldwide. These collaborators are carefully briefed on the specific items and outlets to price, ensuring they align with the spending habits of expatriates. Many of our partners have years of experience working with ECA and understand the nuances of our methodology. Their familiarity with local markets enables them to capture current price levels, identify outlet changes, and spot irregularities. All data they collect undergoes rigorous scrutiny by our in-house analysts before being used in our indices.

Online

Collecting prices from online outlets has become an essential part of our methodology. Online retailers offer a reliable and representative view of the prices expatriates are likely to encounter -especially in urban centres where digital services are well developed. In many locations, online outlets reflect mainstream consumer behaviour, offering transparency, convenience, and a consistent reference point across time.

This method allows us to gather data quickly and efficiently, and also enables us to monitor price trends and update data more frequently, helping ensure our indices remain accurate and responsive to market changes.

Expatriates

When we run our cost of living surveys, we invite companies to ask their assignees to contribute by submitting prices from the outlets they personally shop at. This provides valuable insight into real-world expatriate spending patterns and helps ensure the indices reflect how and where assignees actually shop. To maintain integrity, all submissions go through a thorough verification process. We check for consistency, compare with historical data, and monitor for any anomalies or coordinated responses.

What this means for you

ECA’s multi-source data collection approach ensures the integrity and reliability of our cost of living indices. By triangulating data from trusted local sources, online outlets, and assignees themselves, we produce robust, representative pricing data from locations all over the world. Our experienced analysts apply tried-and-tested methods developed over five decades to ensure results you can trust.

Of course, the index itself is just one part of the puzzle. Knowing how and when to apply it - what to include or exclude, how to calculate spendable income, and how to update the data - is essential. Fortunately, ECA has the tools, systems, and expertise to guide you through the entire process.