The most expensive cities in the world to live in, according to the global ranking

The most expensive cities in the world to live in, according to the global ranking

Tel Aviv was considered the most expensive city in the world to live in, at a time when rising inflation and supply chain problems are driving up prices around the world.

The Israeli city came in first for the first time in a survey by the Economist Intelligence Unit (EIU), the analysis and research arm of British magazine The Economist.

Last year, Tel Aviv was in fifth place. At the top of the list, he pushed Paris into second place, along with Singapore.

Damascus, Syria, ravaged by civil war, was considered the cheapest in the world.

The survey compares the US dollar costs of more than 200 goods and services in 173 cities.

According to the EIU, data collected in August and September showed that, on average, prices rose 3.5% in currency terms — the fastest rate of inflation recorded in five years.

Transport registered the largest price increases, with the cost of a liter of gasoline increasing by 21%, on average, in the cities studied.

Tel Aviv’s rise to the top of the EIU’s ‘World Cost of Living’ ranking primarily reflected the rising appreciation of Israel’s currency, the shekel, against the dollar. Local prices for around 10% of goods have also increased significantly, particularly food.

The survey found that Tel Aviv was the second most expensive city for alcohol and transportation, fifth for personal care items and sixth for leisure.

Tel Aviv Mayor Ron Huldai warned in an interview with local newspaper Haaretz that rising real estate prices — not included in the EIU’s calculations — is causing the city to be heading for an “explosion.”

“Tel Aviv will get more and more expensive, just as the whole country is getting more expensive,” he said.

“The fundamental problem is that in Israel there is no alternative metropolitan center. In the United States there is New York, Chicago, Miami and so on. In the United Kingdom there is Greater London, Manchester and Liverpool. another city if the cost of living becomes too onerous.”

Last year, Paris, Zurich and Hong Kong shared first place in the EIU survey.

Zurich and Hong Kong were fourth and fifth this year, followed by New York, Geneva, Copenhagen, Los Angeles and Osaka.

At a time of devaluation of the real against the dollar, the three Brazilian cities evaluated in the ranking —​São Paulo, Rio de Janeiro and Manaus— were in less prominent positions. The first two tied for 150th place, and Manaus was ranked 160th.

Tehran, the Iranian capital, was the city that rose the most in the ranking, jumping from 79th to 29th, as the re-imposition of US economic sanctions against Iran has caused shortages of products and increased prices.

In contrast, Rome fell the most, from 32nd to 48th, “with a particularly steep decline in its shopping basket and clothing categories.”

According to the EIU, the cheapest cities in the world are in the Middle East, Africa and the poorest parts of Asia.

The top of the ranking is still dominated by European and developed Asian cities, while American and Chinese cities remain “relatively moderate”.

“However, last year’s uncertainties mean that there is no clear regional pattern for movements in the ranking”, he points out.

The EIU said the survey remains sensitive to changes brought about by the coronavirus pandemic.

“Although most economies are now recovering from the supply of Covid-19 vaccines, the world’s major cities are still experiencing case outbreaks, leading to new social constraints. In many cities, this has disrupted the supply of goods, leading to scarcity and higher prices.”

“The fluctuation in consumer demand has also influenced buying habits, while investor confidence has affected currencies, further fueling price increases,” he added.

The expectation, according to the EIU, is that the cost of living will rise further in many cities in 2022, while inflationary expectations are likely to “contribute to wage increases, further fueling price increases”.

“However, as central banks cautiously raise interest rates to curb inflation, price increases are likely to ease from this year’s level. 2022, down from 5.1% in 2021, but still substantially higher than in recent years. If supply chain disruptions are alleviated and lockdowns eased, as expected, the situation should improve by the end of 2022, stabilizing the cost of housing in most major cities.”

The five most expensive cities in the world

  • 1 Tel Aviv
  • 2 Paris and Singapore (together in 2nd position)
  • 3 Zurich
  • 4 Hong Kong

The five cheapest cities

  • 1 Damascus
  • 2 Tripoli
  • 3 Tashkent
  • 4 Tunisia
  • 5 Almaty

Fonte: EI


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