Tel Aviv is the most expensive city in the world, according to the annual ranking “The Economist”. The Israeli metropolis overtook Paris and Singapore. Damascus remained the cheapest city.
“Tel Aviv, which came 5th last year, is becoming the world’s most expensive city for the first time,” concludes The Economist with the publication of the survey results in its Wednesday edition.
This position reflects “the strength of the Israeli currency, the shekel, against the dollar as the index uses New York prices as a basis for comparison,” he adds.
The most expensive and cheapest cities in 2021
“After sharing the first place with Zurich and Hong Kong in 2020, Paris falls to the second place in this new edition of the ranking with Singapore” – this is another conclusion of the analyzes.
The measured price increase is the fastest in five years at 3.5%. “Supply chain problems have driven prices up, and COVID-19 and social constraints continue to weigh on production and trade worldwide,” notes The Economist.
Damascus remains the cheapest city in the world due to its currency that crumbles against the dollar, and as a consequence, dollar prices fall, and civil war continues to decimate the local economy.
Syria’s capital suffers from very high inflation, as did Caracas, Buenos Aires and Tehran, which saw the biggest rises in the ranking, from 79th to 29th.
“Overall, European cities and developed Asian cities dominate the ranking, while North American and Chinese cities maintain relatively moderate prices,” the study reads.
The cheapest cities are mainly in the Middle East, Africa or the poorer parts of Asia.
Inflation. Transport costs are rising
Transportation costs have increased in line with gasoline prices, analysts note, but tobacco and entertainment have also seen prices soar.
In the coming year, we expect the cost of living to increase even more in many cities as wages in several sectors increase, notes Upasana Dutt, author of the study. – However, we expect central banks to cautiously raise key interest rates to contain inflation. The price increase should therefore start to decline, he adds.
The Global Cost of Living Index published by The Economist Intelligence Unit (EIU) evaluates 173 cities based on prices based on a basket of over 200 products and services.
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