The new worldwide survey shows that New York and Singapore have emerged as the joint-most expensive cities to live in.
Reportedly, the cost of living in the 172 major cities in the world rocketed to an average of 8.1 percent over the past year. The soaring cost of living is the result of the ongoing war in Ukraine in addition to the continuing pandemic restrictions that has highly disrupted the supply chains, particularly for energy and food.
On an average, prices in these major cities, reported by the EIU’s World Wide Cost Of Living (WCOL), rose by 8.1 percent in local currency terms. This year’s survey was conducted between August 16 and September 16.
While investors are trying to make profit as safely as possible, the strong US dollar keeps on rising interest rates rates on the city rankings, reports WCOL index.
For the first time, New York has topped the rankings in tie with Singapore. Together, the two cities have surpassed last year’s leader, Tel Aviv, who now ranks third in the list.
Meanwhile, Damascus (Syria) and Tripoli (Libya) remains the cheapest cities in the world ranking.
Apart from New York, Los Angeles and San Francisco has also levelled up in the list of the ten most expensive cities worldwide.
In fact, amid the rapid rise in the prices, the rankings of all the 22 of the US cities has rose according to the WCOL survey. Six of these- Atlanta, Charlotte, Indianapolis, San Diego, Portland and Boston, are among the ten cities with the biggest jumps up the rankings.
The war actually affected Russian cities the most, as Moscow and St Petersburg became the biggest upward movers this year. The prices soared here due to the Western sanctions and buoyant energy markets supported by the Rouble.
As the energy crisis and weakening economies pushed down the value of the Euro and other local currencies, most of the other European cities fell down in rankings. Stockholm, Luxembourg and Lyon were the biggest fallers in our rankings. However, prices still rose rapidly in these regions, as gas and electricity were up by 29% on average, as a result of the western European cities trying to wean itself off Russian energy. This compares with a global average increase of 11 percent.
Globally, the most rapid price rises were for petrol (as in 2021), which soared by 22% in local-currency terms. Prices for utilities such as food and basic household goods, electricity, etc also rose rapidly. On the other hand, prices for recreational goods and services were subdued.
Although the calculations show a vivid list of cities highly effected by the economic crises, it exclude Caracas, which continues to suffer from hyperinflation. Other than this, several other cities including Istanbul, Buenos Aires and Tehran are also suffering from very high inflation.