Tel Aviv has lost its title as the most expensive city in the world, falling to third place after New York and Singapore.
According to data released today by the Economist Intelligence Unit, the cost of living in the world’s largest cities is continuing to rise as the war in Ukraine and ongoing pandemic restrictions remain major factors hurting supply chains. According to the analysis, which is based on data collected between August 16 and September 16, 2022, prices rose by 8.1% in local currency terms across the 172 locations it monitors. This is the fastest annual rate in the 20 years for which digital cost-of-living data is available.
Moscow and St. Petersburg, two major Russian cities, had the greatest increases in their rankings, jumping 88 and 70 places respectively, as prices rose in response to Western sanctions. Most other European cities fell in the rankings as the oil crisis and slowing economy pushed down the value of the euro and other local currencies. The biggest declines in ranks were seen in Stockholm, Luxembourg, and Lyon. Nonetheless, many prices in the region rose significantly. In an effort to wean themselves off Russian energy, prices for gas and electricity increased by an average of 29% in local currency, more than doubling the global average of 11%.
Global petrol prices rose the fastest in local currency terms, by 22%. Utilities such as electricity, as well as groceries and other necessities, saw significant price rises. Pricing for leisure items, on the other hand, was quite low, and may reflect lower demand as consumers prioritise spending on essentials, concludes the report.
In the meantime, Damascus (Syria) and Tripoli (Libya) remain the most affordable cities to live in.