The Economist Intelligence Unit (EIU) has released its most recent Worldwide Cost of Living analysis and Japan’s Singapore tops the list as 2014’s most expensive city in the world.
According to the EIU: “Car costs have very high related certificate of entitlement fees attached to them, which makes Singapore significantly more expensive than any other location when it comes to running a car,” says the study.
“As a result, transport costs in Singapore are almost three times higher than in New York. In addition, as a city-state with very few natural resources to speak of, Singapore is reliant on other countries for energy and water supplies, making it the third most expensive destination for utility costs.”
The report rates 131 cities from around the world, on topics such as: increase in cost of living, inflation and the value of legal tender.
Singapore is not only the most expensive place to live in the world but purchasing garments are just as costly.
Tokyo, the capital of Japan, which was the EIU’s winner last year, fell to 6th place (coupled with Melbourne, Caracas and Geneva) owing to the decline in value of the yen.
Check out the top 10 most expensive cities to reside in.
3. Oslo, Norway
4. Zurich, Switzerland
6. Caracas, Venezuela – tie
6. Geneva, Switzerland – tie
6. Melbourne – tie
6. Tokyo – tie
7. Copenhagen, Denmark
On the other end of the spectrum, the EIU rates the least expensive cities to reside in.
“Although India has been tipped for future growth, much of this is driven by its large population and the untapped potential within the economy,” reports the EIU.
Salaries play a huge part in the EIUs’ scoring system: “Income inequality means that low wages proliferate, driving down household spending and creating many tiers of pricing that keep per capita spending low.
“This, combined with a cheap and plentiful supply of goods into cities, as well as government subsidies on some products, has kept prices down, especially by Western standards.” concluded the EIU.
Here’s the top 10 list of the world’s cheapest cities to reside in.
122. Riyadh, Saudi Arabia
123. Jeddah, Saudi Arabia
124. Panama City, Panama
124. Bucharest, Romania
126. Algiers, Algeria
127. Damascus, Syria
127. Kathmandu, Nepal
129. New Delhi
130. Karachi, Pakistan