Economy & Politics

Ranking Most expensive cities in the world: These metropolises are rising

Currency fluctuations are also responsible for Istanbul’s first place. The decline of the Turkish lira in 2018 led to a 48-place crash. The lira is still weak, but has recovered, the Economist Intelligence Unit declared first place for the Turkish capital. Another price driver was the double-digit inflation rate. Istanbul was number 96 in the global ranking (with Rio de Janeiro and São Paulo). The index value increased by eight points to 54. Image by Samuele Schirò from Pixabay

In the corona crisis, many products have become more expensive. Overall, however, the pandemic has so far not proven to be an inflation driver, at least in the European Union. There, the statistical authority Eurostat expected an inflation rate of only 0.1 percent in May 2020 after 0.3 percent in April. The main reason for the descent was the drop in mineral oil prices. Without the “Energy” item, the inflation rate in May would have been 1.4 percent, slightly above the previous year’s figure (1.2 percent).

Cost of living is falling

Despite the Covid 10 pandemic, this continues a trend that the financial analysts of the Economist Intelligence Unit observed in 2019 worldwide. Each year they examine the cost of living in 133 cities worldwide for the “Worldwide Cost of Living 2020” ranking. According to the report, these decreased by an average of four percent. European cities, in particular, rose in the ranking.

However, some cities recorded a sharp rise in the cost of living against the global trend. The top of this list climbed 24 places. However, this growth mostly took place at a low level. Only two of the ten largest promoters ended up in the top 40 in the overall ranking.

Most expensive cities compared to New York

However, increased living costs do not always mean that residents have to dig deeper. The Economist Intelligence Unit analysts compare all major cities to New York City price levels and convert local prices to US dollars. Currency fluctuations are therefore a crucial factor in changes in the ranking.

The prices of over 160 products and services are recorded for them in March and September. This includes spending on food, drink, clothing, rent, utilities, education, mobility and leisure activities.

Life in these ten cities has become much more expensive in 2019 compared to New York

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