The recent Worldwide Cost of Living report by the Economist Intelligence Unit (EIU) has brought several interesting revelations to light about the cost of living indices across 173 global cities. Central to its findings is that Tel Aviv, the capital of Israel, has emerged as the most expensive city to live in. It compared the prices of over 200 common goods and services to determine these rankings. The report also provided insights on how currency strengths can influence such rankings, and the role of Covid-19 in altering consumer behavior and, ultimately, the cost of living.
Most Expensive City: Tel Aviv’s Ascendance
For the first time, Tel Aviv occupies the top spot in the ranking of the most expensive cities, overtaking Paris. The latter was leading this list last year but now holds the second place jointly with Singapore. This triumvirate is followed by Zurich and Hong Kong. The metropolis of New York is at sixth place while Geneva sits at seventh.
How The Report is Compiled
The International Cost of Living Index uses New York City as a benchmark. Consequently, cities whose currencies are stronger against the US dollar are likely to rank higher. For example, if a city’s currency strengthens against the US dollar, the relative cost of living there increases, thus pushing it higher up in the rankings.
Assessing the Impact of Covid-19
The ongoing Coronavirus pandemic has significantly disrupted global supply chains and altered consumer behavior patterns. These changes have indirectly resulted in an increase in the cost of living across many of the world’s largest cities. In fact, the recorded inflation rate related to the cost of living is the fastest observed in the past five years.
The Indian Scenario
The Indian city of Ahmedabad, in the state of Gujarat, has been named among the top ten cheapest cities worldwide. This clearly demonstrates the relatively lower cost of living in at least some parts of India.
World’s Cheapest Cities
The Syrian capital of Damascus tops the list of cheapest cities to live in. Close on its heels are cities like Tripoli (Libya), Tashkent (Uzbekistan), Tunis (Tunisia), and Almaty (Kazakhstan), all offering a comparatively low cost of living.
About the Economist Intelligence Unit (EIU)
Responsible for releasing the Worldwide Cost of Living report, The Economist Intelligence Unit is a research and analysis division of The Economist Group. This group also owns the globally acclaimed newspaper, The Economist. The EIU produces several other important reports too, including the Democracy Index that offers a snapshot of the state of democracy across 165 independent states and two territories. In this particular index, India ranks 53rd.
