While countries are showing signs of an upward trajectory post-COVID, it is no surprise that the global cost of living crisis is still very much prevalent. Most of all, big-city dwellers are the ones suffering the most. According to the Worldwide Cost of Living Index published by the Economist Ingelligence Unit, the average cost of living in 2023 has increased by 7.4% this year. Netizens have long known that the cost of living has been on the rise with many complaining about the rising grocery prices in their cities. While this is lower than 2022’s report which saw an increase of 8.1%, the numbers are still significantly higher than “historic trends.”
CNN has reported that inflation has slowed down this time around. The slowing pace of price increases is due to the reduction of supply chain issues since China lifted its COVID-19 restrictions in the end of 2022. In a statement, Upasana Dutt, Head of Worldwide Cost of Living at EIU said, “We expect inflation to continue to decelerate in 2024, as the lagged impact of interest-rate rises starts affecting economic activity, and in turn, consumer demand.” However inherent risks of armed conflicts and extreme weather remain a concern, “Further escalations of the Israel-Hamas war would drive up energy prices, while a greater than expected impact from El Niño would push up food prices even further.”
As for the most expensive cities to live in this year, Singapore and Zurich are tied for the top spot. Zurich jumped from last year‘s sixth spot. Its rise to the top is attributed to the strength of the Swiss Franc, along with the high grocery, household goods and recreation prices. Singapore’s costly transit and clothing have also been the reason behind their first place position. Last year, Singapore was tied with New York City in first place but this year, NYC takes third with Geneva. Hong Kong is the only other Asian city in the top 10 and lands in fifth, while Los Angeles takes sixth and Pari in seventh. Tel Aviv and Copenhagen are in eighth and San Francisco round out the list at No. 10. It is worth noting that the survey was taken before October’s Israel-Hamas conflict.
The survey also said that the city slowest to post-pandemic recovery and “subdued consumer demand” are Chinese cities like Beijing, which is ranked much lower this year. Russian cities like Moscow and St. Petersburg saw some of the sharpest drops as well. Take a look at look at the top 10 rankings below.
World’s Top 10 Most Expensive Cities of 2023
1. Zurich and Singapore (tie)
3. New York and Geneva (tie)
5. Hong Kong
6. Los Angeles
7. Paris
8. Tel Aviv and Copenhagen (tie)
10. San Francisco
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