Anew Economist evaluation of the world’s most expensive cities to live in has put New York and Singapore, two of the world’s biggest travel hubs, at the top of a 172-city ranking.
Tel Aviv has meanwhile dropped from the top spot to third place, according to the British magazine’s Worldwide Cost of Living report.
The magazine pointed to Russia’s war against Ukraine as well as the harsh coronavirus-related restrictions in China as reasons for dramatic rises in prices.
“The war in Ukraine, Western sanctions on Russia and China’s zero-Covid policies have caused supply-chain problems that, combined with rising interest rates and exchange-rate shifts, have resulted in a cost-of-living crisis across the world,” said the Economist’s Upasan Dutt, responsible for the analysis.
Prices worldwide have risen faster than at any time in the last 20 years – by an average of 8.1%, according to the research.
Life has become significantly more expensive in Russia, notably in Moscow and St. Petersburg, which have risen 88 and 70 places respectively in the ranking due to the consequences of Western sanctions.
However, major Western cities were also affected by the consequences of war. The price of gas and electricity, for example, had risen by an average of 29% and was thus significantly more expensive than the global average (11%).
The highest inflation, however, was in the Venezuelan capital Caracas with 132%. The country has been experiencing hyperinflation for a long time. The lowest basic prices can still be found in Damascus, Syria and Tripoli, Libya.
All in all, the cost of living in 172 cities worldwide was recorded and compared for the study. The focus was on the prices of 200 goods and services between August 16 and September 16, 2022.