In a recent global survey, Singapore and Zurich have surpassed New York to become the most expensive cities in the world to live in. The Global Cost of Living Report for 2023, issued by Economist Intelligence, attributed Singapore’s rise to the high cost of car ownership and soaring food prices, reported Al-Qabas Daily.
Meanwhile, Zurich’s ascent from sixth to first place was driven by the strong Swiss franc and increases in food, household goods, and entertainment prices. Geneva and New York shared the third spot, while Hong Kong secured the fifth position on the list of the costliest cities to reside in.
Overall, global prices experienced a 7.4% year-on-year increase in local currency terms, slightly lower than the 8.1% surge observed in the previous year. Chinese cities, affected by the country’s economic slowdown post-pandemic and reduced demand for consumer goods, witnessed a decline in their rankings.
Key findings from the study include:
1. Los Angeles (sixth place) and San Francisco (tenth place) were the only American cities that made it to the top ten.
2. Despite a 321% increase in the cost of living, Damascus, the capital of Syria, remained the cheapest city to reside in.
3. Santiago de Queretaro and Aguascalientes in Mexico experienced significant advancements in the global rankings due to the appreciation of the peso against the US dollar.
4. Tokyo dropped 23 places to 60th place, while Osaka fell 27 spots to 70th place due to the weakening of the Japanese yen.
5. Utility prices exhibited the slowest increase among the ten major categories of goods and services studied, with a rise of 5.7%.
Economist Upasana Dutt, Head of the Global Cost of Living Department at Economist Intelligence Unit, noted that the supply shocks that drove up prices in 2021 and 2022 have diminished since China lifted its coronavirus restrictions. Additionally, the rise in energy prices spurred by Russia’s invasion of Ukraine in February 2022 has also tapered off. Dutt anticipates a further slowdown in inflation in 2024, leading to a decline in global prices. The survey, conducted between August 14 and September 11, analyzed over 400 individual prices for products and services in 173 cities worldwide. The Most Expensive Cities in the World for 2023:
1. Singapore
2. Zurich
3. Geneva
4. New York
5. Hong Kong
6. Los Angeles
7. Paris