According to a new survey by the Economist intelligence unit entitled Worldwide cost of living 2022, the most expensive cities in the world have been identified. The analysis was conducted between 16 August and 16 September 2022 by detecting the prices of over 200 goods and services in 172 cities around the world.
To calculate the index for each city, prices in local currency were converted into US dollars, which is why the rankings are also influenced by exchange rates against the dollar. Singapore and New York City are the most expensive cities in the world, while Tel Aviv slips from 1st to 3rd place.
Hong Kong, Los Angeles, Zurich, Geneva, San Francisco, Paris, Copenhagen and Sydney follow in the top 10.
The most expensive cities in the world: here are the incredible data
The study also highlighted how the inflation rate has soared by an average of 8.1% on an annual basis in the major cities of the world.
A figure never recorded in the last twenty years, which is reflected in a global crisis in the cost of living triggered by the Russian-Ukrainian war and the continuous Chinese restrictions on movement. The cheapest cities are Damascus, Tripoli and Tehran.
In the top 10 of those who have lost the most ground compared to last year's ranking, there are five European cities: Stockholm, Luxembourg, Lyon, Manchester and Brussels. This is because the energy crisis triggered by the Ukraine crisis is pushing the continent into recession, depreciating currencies against the dollar and thus reducing the indices of some cities, the researchers point out.
The highest inflation rate is recorded in Caracas, Venezuela, where prices have shot up 132% in local currency compared to last year. Follows Istanbul where they increased by 86%, Buenos Aires with 65% and Tehran with 57%.
The most affected product is oil, whose prices have soared by an average of 22% in local currency. Moscow and St. Petersburg gaining more positions than last year's rankings, which with 88 and 70 leaps forward, respectively, rank 37th and 73rd.
Mexico City also jumped 33 positions and, supported by Mexican interest rate hikes in advance of the Fed's moves, ranks 43rd.