If you want to know where customers are likely to feel the pinch on their budgets, look to the 2023 Worldwide Cost of Living survey. It’s conducted twice-yearly by research expert EIU, and compares more than 400 individual prices across 200 products and services in 173 cities. The research found the world’s most expensive cities to be:
- Joint 1st: Zurich
- Joint 1st: Singapore
- Joint 3rd: New York
- Joint 3rd: Geneva
- 5th: Hong Kong
- 6th: Los Angeles
- 7th: Paris
- Joint 8th: Tel Aviv
- Joint 8th: Copenhagen
- 10th: San Francisco
Singapore maintained its pole position as the world’s most expensive city for the ninth time in the last eleven years, tying with Zurich, which moved up from sixth place last year. It overtook New York, which dropped to third place, having tied with Singapore for first place last year.
Tel Aviv came in joint eighth position, but the survey was conducted before the Israel-Hamas war broke out, and the report notes this has affected the exchange rates in Israel and may have made it harder to procure some goods in Tel Aviv, thereby affecting prices. The survey also excluded Kyiv and hyperinflation-stricken Caracas.
The report noted that while three US cities (New York, Los Angeles, and San Francisco) are among the top ten, North American cities have, on average, slipped down the rankings.
Western Europe accounts for four of the top ten most expensive cities in the list, which the report attributes to “sticky inflation in groceries and clothing along with appreciation of the region’s currencies.”
The Russian cities of Moscow and St Petersburg experienced the biggest drop in the rankings as sanctions weakened the rouble.
The survey shows the easing of supply-chain disruptions has slowed the pace of price increases, although it remains high. Prices rose by an average of 7.4% year-on-year in local currency terms.
Upasana Dutt, head of worldwide cost of living at EIU, said: “The supply-side shocks that drove price increases in 2021-22 have reduced since China lifted its Covid-19 restrictions in late 2022, while the spike in energy prices seen after Russia invaded Ukraine in February 2022 has also eased. However, the cost-of-living crisis is hardly over and price levels remain much above historical trends.”
