Cost of Living & Most Expensive Cities

In the economic landscape, the financial burden many people have been facing is far from over. As per the Economist Intelligence Unit’s (EIU) annual Worldwide Cost of Living Index, this year witnessed a 7.4% rise in average living costs, with grocery prices hitting the highest rise. Interestingly, this is slightly lower than 2022’s 8.1% increase, yet these numbers are considerably higher than historical averages.

Utility prices, the fastest rising category in 2022, have shown less inflation this time. Moreover, the pace of general price increases is expected to slow down due to improvements in supply chain issues since the end of China’s Covid-19 restrictions in late 2022. However, grocery prices continue to climb as retailers balance higher costs.

“We expect inflation to continue to decelerate in 2024, as the lagged impact of interest-rate rises starts affecting economic activity, and in turn, consumer demand.”

Upasana Dutt, Head of Worldwide Cost of Living at EIU, via CNN Travel

In the current economy, many cities have become pricier. Specific cities have been impacted more than others, with Singapore and Zurich claiming the top spots as the world’s most expensive cities. The rest of the top 10 are as follows:

1. (Tied) Zurich, Switzerland and Singapore
2. (Tied) New York, USA and Geneva, Switzerland
3. Hong Kong
4. Los Angeles, USA
5. Paris, France
6. (Tied) Tel Aviv, Israel and Copenhagen, Denmark
7. San Francisco, USA

Some cities have faced significant drops in their rankings, such as Moscow and St. Petersburg due to the ruble’s depreciation following Russia’s 2022 Ukraine invasion. Slow post-pandemic recovery also saw Chinese cities like Beijing dropping down on the list. At the other end, Damascus, Syria, remains the least expensive city worldwide, followed closely by Tehran, Iran, and Tripoli, Libya.

The 2023 Worldwide Cost of Living Index analyzed 173 major cities and compared 400 prices across 200 products and services. The growing cost of living crisis is a reality we must face, highlighting the importance of being informed and managing finances strategically.