The world’s most expensive cities to live in are New York and Singapore. That’s according to the Worldwide Cost of Living Index released by the Economist Intelligence Unit. For the first time New York has topped the rankings and last year’s number one, Tel Aviv, now comes in at third.
Overall, the the world’s largest cities saw an average cost of living rise by 8.1% this year. The war in Ukraine and the impact of COVID-19 on global supply chains were also identified as factors contributing to the increase.
One of the reasons why New York topped the list is high inflation in the US. Inflation was also high in Istanbul, with prices jumping 86%, Buenos Aires (64%) and Tehran (57%). Moscow and St. Petersburg also rose in the rankings from 88th and 70th to 37th and 73rd, respectively. The increase in Russian cities is a result of Western sanctions following Russia’s invasion of Ukraine.
The rise in petrol prices in cities was particularly strong but food, utilities and household goods are all getting more expensive for city-dwellers.
Upasana Dutt, Head of Worldwide Cost of Living at EIU
Los Angeles and San Francisco in the US state of California ranked among the top 10 most expensive: earlier this year, US inflation was the highest in more than 40 years. Six of the top ten global movers in the study are other US cities such as Atlanta and Boston. Mexico City also rocketed up 33 places, with the peso supported by Mexico’s own interest-rate hikes, which are tracking ahead of the Fed’s in the USA. The strengthening US dollar was also a factor in the prominence of US cities in the report.
The survey compares the US dollar costs of goods and services in 172 cities. Kyiv was excluded from this year’s review. In total the study compared more than 400 individual prices on more than 200 products and services in 172 cities around the world.
“The war in Ukraine, Western sanctions on Russia and China’s zero-Covid policies have caused supply-chain problems that, combined with rising interest rates and exchange-rate shifts, have resulted in a cost-of-living crisis across the world,” Upasana Dutt, head of worldwide cost of living at EIU, said in a media statement.
World’s Most Expensive Cities
- Singapore
- New York
- Tel Aviv
- Hong Kong
- Los Angeles
- Zurich
- Geneva
- San Francisco
- Paris
- Copenhagen
- Sydney
Other Key FIndings
- The most rapid increase in the Worldwide Cost of Living index was for the price of a liter of petrol. The price has risen by 22% year on year on average in local-currency terms amid higher global oil prices and a stronger US dollar.
- Prices for gas and electricity increased by 29% on average in local-currency terms in western European cities, this is as the region tries to wean itself off Russian energy. The average global increase measured 11%.
- There has also been high inflation for food and household goods amid trade restrictions, caused in part by the war in Ukraine. By contrast, prices for recreational goods and services have been subdued in local-currency terms; this may be a reflection of softer demand as consumers focus spending on essentials.
“We can clearly see the impact in this year’s index, with the average price rise across the 172 cities in our survey being the strongest we’ve seen in the 20 years for which we have digital data,” Dutt said.
World’s Least Expensive Cities
- Colombo
- Bangalore
- Algiers
- Chennai
- Ahmedabad
- Almaty
- Karachi
- Tashkent
- Tunis
- Tehran
- Tripoli
- Damascus
