An overview of the general cost of living index for Arab, AL is displayed above for your reference. Residents in Arab, AL enjoy a cost of living index of 94. This index is 6% higher than the Alabama average, and 6% lower than the national average. The following categories are used when determining the cost of living index for any given city: health care (5%), transportation (9%), utilities (10%), groceries (13%), housing (30%), and goods/services (33%). Clearly, housing and goods/services make up the majority of the formula for calculating the cost of living index. Because of this, the general cost of living for any given area can be estimated by looking at the cost of everyday goods in that area. For those living in Arab, AL, the average cost of goods and services is 11% higher than it is in Alabama, and it is 7% higher than the national average.