The Economist Intelligence Unit has released its annual list of the most expensive cities to live in. But don’t expect destinations like Dubai, Doha or Monte Carlo: not because their wealth has been affected by the pandemic, on the contrary. This ranking is in fact based on the purchasing power of its residents, so it relates the price of food and transport to the strength of the local currency against the dollar. Thus the Israeli city of Tel Aviv leapt from fifth to first place in just 365 days, surpassing last year’s leaders Paris, which is now tied in second place with Singapore.
The 2021 World Cost of Living Index tracks the cost of living in 173 global cities, 40 more than last year, and compares the price of more than 200 everyday products and services. Zurich and Hong Kong are in fourth and fifth place respectively, having held the top spot last year together with Paris. New York, Geneva, Copenhagen, Los Angeles and Osaka round out the rest of the top ten.
The Eiu estimated that, on average, “the prices of the goods and services covered by the index increased by 3.5% year-on-year in local currency, compared to an increase of just 1.9% on the year. previous”. In short, the pandemic has played a severe blow to purchasing power. The rest was the increase in oil prices, but there were also “strong increases in the categories of recreation, tobacco and personal care”.
According to expert Upasana Dutt, “although most economies around the world are recovering with the introduction of Covid-19 vaccines, many large cities are still experiencing spikes in cases, leading to social restrictions. These disrupted the supply of goods, leading to shortages and higher prices. But not all cities have seen price increases. Many of the cities at the bottom of our rankings have seen prices stagnate or even decline, in part because their currencies have weakened against the dollar. In the coming year, we expect a further increase in the cost of living in many cities, but also a rise in wages in many sectors. However, we also expect central banks to raise interest rates, cautiously, to stem inflation. “
The city where the cost of living increased the most in just a year was the Iranian city of Tehran, which jumped 50 places – from 79th to 29th place – as US sanctions led to shortages and more prices. high. The Syrian city of Damascus is once again the cheapest city in the world, as its war-torn economy continues to struggle.
RANKING 2021
1. Tel Aviv, Israel
2. Paris and Singapore (tie)
4. Zurich, Switzerland
5. Hong Kong
6. New York, New York
7. Geneva, Switzerland
8. Copenhagen, Denmark
9. Los Angeles, California
10. Osaka, Japan
TOP 20
11. Oslo, Norway
12. Seoul, South Korea
13. Tokyo, Japan
14. Vienna and Sydney (tie)
16. Melbourne, Australia
17. Helsinki and London (tie)
19. Dublin, Frankfurt, Shanghai (tie)