New York City has lost its position as the world’s most expensive city, according to the latest Worldwide Cost of Living (WCOL) survey by the Economist Intelligence Unit (EIU).
New York City loses ‘world’s most expensive city’ title
The survey, which was conducted between 14 August and 11 September 2023, indicates a dynamic change in the cost of living across major global cities.
The WCOL survey, a comprehensive analysis of the cost of living in major cities around the world, has revealed that Singapore and Zurich now tie for the position of the most expensive city.
This marks a notable change from last year when New York City shared the top spot with Singapore.
The survey ranks cities by comparing more than 400 individual prices across over 200 products and services. New York City has moved down to the third position, sharing it with Geneva, Switzerland.
The change in rankings is partly attributed to currency fluctuations and local inflation rates. While New York City remains a high-cost location, particularly in terms of utilities, domestic help, and tobacco, the strength of the Swiss Franc and high prices in areas such as groceries, household goods, and recreation have pushed Zurich up the list.
Singapore’s high transport and clothing costs have also contributed to its top ranking.
Globally, average prices rose by 7.4% in local currency terms over the past year in major cities. This rate is slightly slower than the 8.1% price growth recorded last year.
Western European cities, in particular, have risen in the rankings due to sticky inflation in groceries, clothing, and personal care, combined with the appreciation of the Euro and other local currencies.
The survey also highlighted regional variations in inflation trends. Asian cities are among the most expensive for groceries and alcohol, while Australian cities rank high for tobacco prices.
In contrast, North American cities, including New York, have seen an average slip in rankings as the region now reports the lowest inflation in the survey.
Looking ahead, the EIU anticipates that the lagged impact of interest-rate rises will slow down economic activity and consumer demand in 2024.
However, risks to inflation remain, with potential escalations of geopolitical events and weather phenomena like El Niño possibly influencing future cost-of-living trends.
