Every year, the Economist Intelligence Unit (EIU) conducts a survey of 172 major world cities. The research determines the cost of living in these cities and gives us an idea of where to plan your next vacation or where to settle down.
So if you’re thinking about moving to New York or Singapore, keep in mind that both cities have one thing in common: their tendency to burn a hole in your pocket.
The cost of living in both cities is quite high, according to the EIU survey. If you want to understand how high it is, take this: The EIU calculates the cost of living by creating an index that takes into account a number of variables. Now, on this scale, 1 represents the lowest (and thus the cheapest location to live) and 100 the highest, with increasing inflation. New York and Singapore top the list, both with a score of 100.
Here’s what else was found:
- EIU’s global cost of living survey found that prices are rising sharply 8.1% this year, the most in the last twenty years.
- New York is ranked number one for the first time, tied with Singapore, which is ranked number one for the eighth time in ten years. Together they pushed Tel Aviv, Israel (which topped the charts last year) to third place.
- The most dramatic price increase was a liter of gasoline, which went up by 22% year-on-year average in local currency.
- The Russian cities of Moscow and St. Petersburg were the biggest gainers, rising 88 and 70 places respectively, as prices jumped amid Western sanctions and buoyant energy markets supported the ruble.
- Gas and electricity prices rose by 29% on average as Western cities try to wean themselves off Russian energy supplies.
What other cities topped the list?
Which cities are the cheapest?
Why is the cost of living becoming so expensive? The EIU highlights two main global reasons for it (in addition to the crisis in individual countries):
- The war in Ukraine has disrupted supply chains, particularly for energy and food.
- Continued restrictions due to the pandemic have also affected the supply chain, especially in China, which is one of the largest economies in the world (His zero Covid policy also affected their production and thus the global chain).
Where do Indian cities stand? According to the survey, Indian cities are in a pretty good position as commodity prices are not that high compared to other cities in the world. A surprising three cities: Bengaluru (yes i know we are shocked too), Ahmedabad and Chennai are among the last 10 cheapest cities to live. All these three cities score less than 40. However, Mumbai scores between 40-60 (somewhat expensive place to live).
What factors does the EUI index take into account?
Our annual Living Conditions Survey examines factors of stability, health care, culture and environment, education and infrastructure to determine living conditions for cities around the world
– Economist Intelligence Unit