 | The most expensive cities in the world, Asia and Europe 17-06-2008 Deciding on which is the world’s most expensive city is a little bit like
choosing between the merits of various world heavy weight boxing champions.
Until a few years ago the choice was between Tokyo and London. But in its 2007
‘Worldwide cost of living survey’ the Economist Intelligence Unit (EIU) said
four European cities had overtaken Tokyo as the world’s costliest city. However,
Mercer Consulting insists Moscow was the most expensive city in the world, with
Oslo ranked 10th. Meanwhile, in its March 2008 research, Swiss Bank UBS puts
London in first place, followed by Oslo, New York and Tokyo. To make budget
planning for international travellers and expatriates even more difficult, ECA’s
June 2008 research suggests that Angola’s capital Luanda was the most expensive
city in the world.
The basic problem with all four surveys is that they convert local prices
into US dollars, which means that any changes are as much the result of currency
fluctuations as of price inflation. For example according to all four surveys,
the cost of living in cities outside the US dollar zone becomes more expensive
if the dollar weakens against local currencies even when prices remain unchanged
or indeed fall.
Inflation has been seen in most locations worldwide over the past six months,
with food and petrol prices, particularly, increasing quite considerably.
According to ECA data, China saw pork prices increase by a further 19 per cent
between September 2007 and March 2008, while the cost of egg noodles increased
by almost 15 per cent in Singapore. Rice in India is now 11 per cent more
expensive than 6 months ago while in that same period potatoes have increased 4
per cent in the UK, pasta went up almost 12 per cent in Italy and, in Australia,
the price of a bottle of white wine rose 7 per cent. The cost of petrol has gone
up more than 13 per cent in Hong Kong and Singapore, and by almost 11 per cent
in Australia over the last 6 months.
For expatriates, particularly those paying with US dollars, Angola’s capital
Luanda is the most expensive city in the world. The cost of living for those
hankering after imported food rather than local produce is higher in this
African metropolis than in Tokyo, Paris or London. ECA International, which
carried out the research, explained that its cost of living survey compared a
basket of 128 consumer goods and services commonly purchased by expatriates in
over 370 locations worldwide. “Certain items and brands typically purchased by
expatriates, can be very expensive in a location such as Luanda where they are
not readily available locally.”
The ECA ranking placed Oslo second, followed by Stavenger, another Norwegian
city. Denmark's Copenhagen was in fourth place. Moscow ranked fifth. Places six
to ten include four Swiss cities – Geneva, Zurich, Basel and Bern – as well as
Libreville, Gabon’s capital.
Tokyo (13th overall) is the most expensive city in Asia, overtaking last
year’s most expensive Asian location, Seoul, which has fallen to 18th place due,
largely, to the appreciation of the Yen against the US dollar over the past six
months. Locations, which have moved fastest up the Asian rankings include
Manila, Singapore and many second tier cities in China because of a combination
of stronger currency and relatively high price increases.
While cities such as Caracas and Buenos Aires have become more expensive due
to local price inflation, the cost of living for expatriates and foreigners in
other locations has been more affected by the strengthening or weakening of
their home currency against host country currencies. “Many locations in Europe,
for example, have moved up the ranking due to the appreciation of their
currencies,” a ECA director explained.
Source: CityMayors LinksClick here to read the full article "The most expensive cities in the world, Asia and Europe" back |
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