Highlights:
- According to a report released on Wednesday, Israel’s Tel Aviv become the most expensive city in the world to live in.
- Paris and Singapore were tied for second place, followed by Zurich and Hong Kong. New York was sixth, while Geneva was seventh.
According to a survey published on Wednesday, Tel Aviv (Israel) is the most expensive city in the world to live in, as rising inflation has pushed up global living costs.
The Israeli city climbed five ranks up to claim first place in the official ranking released by the Economist Intelligence Unit (EIU) for the first time.
The Worldwide Cost of Living Index is determined by comparing the prices of goods and services in US currency in 173 cities.
Tel Aviv, Israel’s largest city, ascended the ranks, due in part to the strength of the shekel compared to the US dollar, as well as hikes in transportation and groceries expenses.
Paris and Singapore were tied for second, followed by Zurich and Hong Kong. New York was sixth, whereas Geneva was seventh.
Copenhagen was ranked eighth, Los Angeles at ninth, and Osaka, Japan was ranked tenth.
Last year, Paris, Zurich, and Hong Kong were jointly placed in the top position as per the survey.
This year’s data was taken in August and September, when transportation and commodity costs were rising, and it reveals that prices increased by 3.5 percent on average in local currency terms, the fastest inflation rate in the past five years.
Social restrictions caused by the coronavirus pandemic “have disturbed the supply of goods, resulting in shortages and increased costs,” according to the EIU’s head of worldwide cost of living, Upasana Dutt.
“We can definitely see the impact in this year’s index, with the spike in petrol prices particularly stark.” She went on to say that central banks are expected to raise interest rates cautiously, decreasing inflation.
Caracas, Buenos Aires, Damascus, and Tehran have very high inflation rates; thus, the average number excludes them.
The Iranian capital has jumped from 79th to 29th in the rankings as a result of US sanctions.
