Cost of goods and services

Definition

The cost of goods and services refers to the amount of money needed to purchase goods or services produced within a country or imported from abroad.

Related terms

Inflation: Inflation refers to an overall increase in prices over time. When inflation occurs, the cost of goods and services tends to rise.

Domestic production: Domestic production refers to the creation or manufacturing process taking place within a particular country's borders.

Import/export: Imports are goods or services brought into a country from abroad, while exports are goods or services produced domestically and sold to other countries. The cost of goods and services can be affected by the amount of imports and exports a country engages in.