The Economist Intelligence Unit (EIU) released the Worldwide Cost of Living Index for 2022, according to the calculated data the average living cost has increased by 8.1% this year, as a residual effect of the pandemic as well as Russia’s ongoing war in Ukraine. New York and Singapore have claimed the first position in the list of the world’s most expensive cities to live in.
The ranking of the cities in the Worldwide Cost of Living Index is as follows:
1. New York and Singapore (tie)
3. Tel Aviv, Israel
4. Hong Kong and Los Angeles (tie)
6. Zurich, Switzerland
7. Geneva, Switzerland
8. San Francisco, California
9. Paris, France
10. Copenhagen, Denmark
EIU’s worldwide cost of living index’s head Upasana Dutt said in a statement, the ongoing Russian war in Ukraine, sanctions imposed on Russia by the western nations, and China’s harsh Zero covid policies have resulted in increasing supply-chain problems. Combined with the shifts in currency exchange rates and rising interest costs has resulted in an emerging cost of living crisis across the globe.
As the western European nations have started to stop using Russia as the number 1 energy supplier in the region, electricity prices were up by a staggering 29% in local currency terms. The global increase was an average of 11%.
She further added that the digital data gained in the course of the survey held across 172 cities of the world, indicated that the average living costs for city-dwellers are becoming steeper every year. The petrol prices across the cities were worrisome but the prices of utilities, food, and household goods are becoming more and more expensive. While in sharp contrast the costs for recreational goods and services repressed significantly, indicating the general public has focussed more on essential services instead of luxury goods as the costs of living for city-dwellers rise steadily.
To make the list, the EIU evaluates nearly 400 individual prices across nearly 200 services and products in 172 cities across the world to prepare the list. The assessment is made by conducting surveys of several high- and low-end firms, comparing the price changes over the years.
The fervent increase in prices has been attributed to higher energy and food costs due to the occurrences in the world economy. Petrol prices reached a record number in comparison to other years, as the global oil prices increase and the local currency terms have altered as well.
The global mobility corporation ECA International released its individual list of the most expensive cities in the world. The ECA list has a different technique for the assessment, as the organization focuses on regular costs such as the price of public transportation and rents while prices of luxury products and services are excluded from the survey.
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