The Costliest Cities to Reside in by 2023
The world's costliest cities in 2023: Asia's economic powerhouse and a European stalwart share the top spot as the most expensive urban centers globally Discover the movers and shakers in this year's list of the world's 10 priciest cities
The global cost of living crisis continues, with big-city residents feeling the impact the most. The annual Worldwide Cost of Living Index, published by the Economist Intelligence Unit (EIU), reveals that the average cost of living has risen by 7.4% this year, with grocery prices seeing the fastest increase.
While the increase is slightly lower than the 8.1% surge reported in 2022, the figures still exceed "historic trends." However, there is a silver lining. Utility prices, which had the highest inflation rate in the 2022 survey, experienced the lowest increase this time.
Inflation predictions
Zurich, Switzerland and Singapore are tied as the world's most expensive cities on the Worldwide Cost of Living Index from the Economist Intelligence Unit. The photo shows Zurich, Switzerland.
The pace of price increases has slowed due to the easing of supply chain issues following the lifting of Covid-19 restrictions in China in late 2022. Despite this, grocery prices are still on the rise as retailers transfer higher costs to consumers.
In a statement, Upasana Dutt, Head of Worldwide Cost of Living at EIU, stated that inflation is expected to continue decelerating in 2024 due to the lagged impact of interest-rate rises affecting economic activity and consumer demand. Dutt also cautioned about potential upside risks from armed conflict and extreme weather.
"Additionally, if the Israel-Hamas war continues to escalate, it will result in higher energy prices. Furthermore, an even greater impact from El Niño than anticipated would also lead to a further increase in food prices," she stated. The rise in living expenses has made many cities more costly to reside in, with some being affected more severely than others.
The most expensive cities
Israel's Tel Aviv tied with Denmark's Copenhagen at eighth place.
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Singapore and Zurich, Switzerland have been identified as the two most expensive cities in the world. Zurich saw a significant rise from sixth place on last year's list, attributed to the strength of the Swiss Franc and the high prices of groceries, household goods, and recreation. Meanwhile, Singapore's costly transport and clothing were also highlighted.
Top Liveable Cities for 2023
Despite tying with Singapore for first place last year, New York, a popular US destination, slipped to third place this year, tying with Geneva, Switzerland, as prices have increased by 1.9% according to the study.
Hong Kong is the only other Asian destination to make the top 10, coming in at fifth place. Los Angeles and Paris follow at No. 6 and No. 7, respectively, as the most expensive cities in the world. Tel Aviv of Israel and Copenhagen of Denmark share the eighth spot. It is important to mention that the survey was conducted before the outbreak of the Israel-Hamas conflict in October.
Finally, San Francisco, one of three US cities in the top 10, came in 10th place.
Movers and shakers
Hong Kong, the "Pearl of the Orient," came in fifth on the list of the world's most expensive cities to live in.
Chunyip Wong/iStockphoto/Getty Images
Moving further down the list, the Russian cities of Moscow and St. Petersburg experienced significant declines, dropping 105 and 74 places respectively in this year's ranking. This decline can be attributed to the considerable drop in the value of the ruble following Russia's invasion of Ukraine in February 2022.
The survey cited slow post-pandemic recovery and "subdued consumer demand" as contributing factors to the drop in rankings for Chinese cities like Beijing, which fell from 34th place last year. Damascus, Syria, continues to hold the title of the world's cheapest city, with Tehran, Iran, and Tripoli, Libya, also ranking near the bottom at 172nd and 171st place, respectively.
The highest costs for utility, domestic help, and tobacco were found in US cities, while Western European cities ranked as some of the most expensive for recreation, transport, and household goods. According to the survey, Asian cities had the highest costs for groceries and alcohol.
The 2023 Global Cost of Living study covered 173 major cities, analyzing over 400 individual prices for 200 products and services. The survey did not include Caracas, Venezuela, where prices have surged by 450% since 2022.
The worlds 10 most expensive cities for 2023
1. Zurich and Singapore (tie)
3. New York and Geneva (tie)
5. Hong KongÂ
6. Los AngelesÂ
7. Paris
8. Tel Aviv and Copenhagen (tie)
10. San FranciscoÂ
