Zurich and Singapore top list of most expensive cities in the world
Zurich and Singapore have been ranked as the most expensive cities in the world, according to a ranking published by the weekly The Economist. This places them ahead of New York, which was at the top previously. The increase in prices worldwide has contributed to this ranking, with a 7.4% rise on average in the 173 cities studied.
Notable increases in the ranking were seen in three Latin American cities – Santiago de Querétaro and Aguascalientes in Mexico and San José in Costa Rica – due to the appreciation of their currencies and foreign investment. The report estimates that prices rose by an average of 7.4% in one year, which is a slight decrease from the record inflation of 8.1% registered in 2022.
The study is based on the prices of 200 products and services, and the head of the study, Upasana Dutt, warns that the cost of living crisis is far from over, with price levels remaining well above historical trends. The report forecasts a continuation of the inflation slowdown in 2024, citing the effect of high interest rates set by numerous central banks to combat price increases.
The top ten cities in the ranking include four European cities, as well as Los Angeles and San Francisco in the United States, and Hong Kong. Notably, three Latin American cities, Santiago de Querétaro, Aguascalientes, and San José, have made significant advances in the ranking due to central banks in the region following the US Federal Reserve’s interest increases to support their currencies.
The study also highlights the impact of strong foreign investment, especially in Mexico, driving up prices. On the other hand, the depreciation of the ruble due to Western sanctions after the invasion of Ukraine has caused Russian cities Moscow and Saint Petersburg to see the biggest drop in the ranking.
The cheapest city according to the study is Damascus, followed by Tehran. Buenos Aires in Argentina is ranked as the tenth most economical city according to the report.