Every year, two reports concerning the world’s most expensive and cheapest cities are released by the Economic Intelligence Unit. This is the list of six most expensive cities to live in, according to EIU,
The small island city-state retained its title as the world’s most expensive city for a third year in a row, but the EIU says its lead over the likes of New York and Hong Kong “has nearly evaporated” because of the surge in the cost of living elsewhere. The EIU says Singapore offers some relative value for things like general groceries.
The EIU blames the unpegging of the Swiss franc from the euro alongside “structurally high income and price levels” for pushing this city to near top of the list.
Hong Kong has climbed seven places up the ranking in the past 12 months because of exceptionally high house prices and an increase in local living costs.
The EIU said that basically everything about Geneva is expensive, and even recreation and entertainment activities have some of the highest costs in the world. The EIU said that is probably because it is “reflecting a greater premium on discretionary spending.”
The EIU said “weak confidence in the euro means that Paris is the only Eurozone city in the top 10.” It noted, however, that despite the weak currency “Paris remains structurally extremely expensive to live in,” and the only thing that is relatively reasonable in terms of value is alcohol and cigarettes.
London’s wage growth is stagnant and has not kept up with inflation and soaring house prices. The average price for a property in London is way over £500,000, but wages on average are close to £30,000.