With inflation and the strengthening of the dollar, New York becomes the most expensive city in the world for the first time, tied with Singapore, according to a ranking by the British weekly The Economist. Two Swiss cities are in the top-10.
New York City topped the list of the world’s most expensive cities for the first time. Tied for first place, the city-state of Singapore is here for the eighth time in ten years. The two cities dethrone Tel Aviv, the cultural and economic heart of Israel, which led the rankings last year.
However, this ranking is influenced by monetary effects: it is done after converting prices into dollars. However, the dollar, traditionally a safe haven in times of crisis, has strengthened sharply in recent months. Its increase is therefore reflected in lower prices outside the United States. American cities are therefore mechanically moving up the ladder, while most European cities are falling, as the energy crisis and weakening economies have weighed on the euro and other local currencies.
The 10 most expensive cities in the world according to The Economist.
Moscow and St. Petersburg have seen their prices skyrocket, under the effect of Western sanctions and a buoyant energy market supporting the ruble, and leapfrog in the rankings. The Russian capital thus gains 88 positions, reaching 37th place.
On the Swiss side, Zürich have dropped two places and are in sixth position, just ahead of Geneva, who remain in seventh place. In the 2020 standings, Zürich had occupied first place.
>> Lire: Tel Aviv has overtaken Zurich as the most expensive city in the world
Effect of seizures
In its 2022 cost of living report released on Thursday, the newspaper also notes that prices have risen by more than 8% on average in a year, in local currency terms, in the 172 cities it surveyed around the world, i.e. the steepest increase recorded for at least 20 years.
>> Read also: Inflation lowers real wages for the first time in more than 20 years
These increases particularly reflect the impact of the “war in Ukraine and the persistent pandemic-related restrictions (which) disrupt supply chains” and particularly affect “energy and food”.
jop with afp
