As it does every year, the Economist Intelligence Unit (EIU) publishes its annual report on the cost of living in the world's major citiesThe result is a ranking of the most expensive cities in the world. The survey was conducted in 173 cities between 14 August and 11 September 2023. based on the calculation of over 200 goods and services for everyday use.
For the second year running, the EIU notes that thenflation remains a difficult problem to manage in many major cities, with prices rocketing over the last two years.
According to the 2023 study, average year-on-year inflation of 7.4%, slightly lower than in 2022 (8.1%). However, the average inflation calculated does not take account of price trends in Kiev and Caracas.
The perverse effects of the Swiss franc
Of the 173 towns on the EIU listThe following can be found to a greater or lesser extent the same cities in the top 10 of the world's most expensive destinations. There are, however, a few changes in this ranking. The 100 reference is applied to New York, and the EIU then calculates the other cities in relation to their exchange rates with the US dollar.
So if Singapore remains the most expensive city in the world (index 104), mainly due to the cost of transport and clothing, it is now joined by ZurichThe Swiss franc, which continues to rise in value, has pushed up the price of food, groceries, transport and leisure activities. The ever-increasing value of the Swiss franc has pushed up the price of food, groceries, transport and leisure activities.
As a result, Zurich's irresistible rise to prominence has led to a decline in the team's fortunes. New York in third place. A position that the American metropolis now shares with Geneva. The two cities are followed by Hong Kong in fifth place (index 98) and Los Angeles (index 97) in sixth place.
Lyon, Berlin and Luxembourg much more expensive
Paris remains in the top 10 most expensive cities. With an index of 91, it is seventh in the ranking. It is followed by Copenhagen and Tel Aviv with an index of 89, and San Francisco concludes the top 10 with an index of 87. If we look at the cities where the cost of living has risen the most, we are surprised to find Berlin and Manchester, both ranked 42nd for cost of living with an index of 73 compared to New York. This represents a jump of 31 places.
Lyon also moved up 30 places to reach an index of 69 and rank 60. A ranking shared with Tokyo. The sharp fall in the yen has made Tokyo much more accessible. Luxembourg climbs 31 places. Its cost of living index of 66 places the city 73rd in the EIU rankings.
Currency devaluation weighs on rankings
Conversely, the least expensive cities in terms of cost of living include Tripoli in Libya with an index of 23/100, Tehran with an index of 20/100 and Damascus with an index of 13/100.. The geo-political or economic situation of these three capitals largely explains their ranking in the EIU study.
The study also points to a a sharp fall in the cost of living in the Russian metropolises of Moscow and St Petersburg and in China's major cities. The weakness of the currencies of these two countries largely explains this movement.
