According to the latest rankings published by The Economist magazine, Paris, Zurich, and Singapore have emerged as the most expensive cities in the world, surpassing New York. The cost of living in these cities has been steadily rising, leading to an average increase of 7.4 percent in prices over the past year in 173 major cities. Although this marks a slight slowdown compared to the record 8.1 percent inflation in 2022, the cost of living crisis is far from over, and prices remain well above historic trends.
The rankings, based on the prices of 200 products and services, provide valuable insights into the global cost of living. Upasana Dutt, who led the study, emphasizes that the inflation rate is expected to decelerate further in 2024. This projection is based on the anticipated impact of interest rate hikes by central banks, aimed at curbing price increases.
Zurich has dethroned New York, which held the top spot in the rankings last year, alongside Singapore. The presence of four European cities in the top 10 can be attributed to continued high inflation affecting essential commodities such as food and clothing, as well as the appreciation of the euro against the dollar. The ranking is denominated in dollars, with other currencies being converted to the greenback accordingly. This conversion results in higher prices in the eurozone as the euro strengthens.
In addition to Zurich, Geneva shares the third place with New York, followed by Hong Kong and Los Angeles. Paris secures the seventh spot, while Copenhagen and Tel Aviv, which topped the ranking in 2021, tie at eighth place. San Francisco rounds out the list of the top 10 most expensive cities.
On the other end of the spectrum, the rankings also highlight the cheapest cities in the world. According to the study, Damascus claims the title of the cheapest city, followed by Tehran. These cities offer a significantly lower cost of living compared to their counterparts at the top of the list.
It is worth noting that the rankings reflect the impact of local laws, customs, and economic conditions on the cost of living. For instance, the weakening ruble due to hefty sanctions in response to Russia’s war in Ukraine has resulted in a significant drop in rankings for Moscow and Saint Petersburg. Moscow now stands at 142nd place, while Saint Petersburg is at 147th place.
These rankings provide valuable insights for individuals and businesses alike, enabling them to make informed decisions regarding relocation, travel, and financial planning. Understanding the cost of living in different cities is crucial for budgeting and managing expenses effectively.
In conclusion, the rankings published by The Economist magazine shed light on the ever-increasing cost of living in cities worldwide. Paris, Zurich, and Singapore have emerged as the most expensive cities, surpassing New York. The rankings serve as a valuable resource for individuals and businesses seeking to understand the global cost of living and make informed decisions based on these insights.
Source: The Manila Times
