Cost of Living Index 2021

The Cost of Living Index 2021 was released by The Economic Intelligence Unit according to which Tel Aviv is the most expensive city in the world.

Highlights:

  • Tel Aviv is the world’s most expensive city, which Paris follows in second place and Singapore in third place.
  • In 2020, Paris was the most expensive city, while in 2021, Zurich and Hong Kong are at fourth and fifth place, respectively.
  • Developed Asian cities and European cities dominated the upper rankings, and the lowest rankings were occupied by cities in Africa, the Middle East and less wealthy parts of Asia.
  • The highest price rise was in Tehran’s Iranian city, which jumped from 79th rank in 2020 to 29th rank in 2021.
  • The US sanctions led to shortages and higher prices. The Syrian city Damascus was ranked the lowest because its war-torn economy is still struggling to recover. Both Damascus and Tehran are suffering from high inflation.
  • The other cities that are suffering from high inflation are Buenos in Argentina and Caracas in Venezuela.
  • No Indian cities covered the first 20 ranks. Tokyo, Japan and Shanghai, China were covered in the first twenty ranks.

 

Cost-of-Living Index

  • The Cost-of-Living Index tracks the cost of living of 173 cities in the world. It compares more than 200 everyday products and services.

 

  • The index benchmarks the prices against the prices in New York. Thus, the cities with currencies that are stronger than the US Dollars appear higher in the ranking.
  • The index reveals that the world’s overall prices of goods and services have progressed by 3.5%. In 2020, this was 1.9%.
  • The global supply chain was hugely changed due to the COVID-19 pandemic and its limitations.
  • The oil price rise played a significant role in the price rise, and unleaded petrol prices increased by 21%.

 

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