New York is ranked among the most expensive cities in the world for the first time, joining Singapore which has been on the list eight times in the past ten years.
According to a recent report by the Economist Intelligence Unit (EIU), New York City and Singapore have been ranked as the world's most expensive cities. The report surveyed the cost of living across various countries, and found that inflation had surged to 8.1% due to the Ukrainian war that occurred in 2022.
Notably, Singapore has appeared on this list eight times in the past decade, while New York has made its first appearance in the top rankings, as the dollar has remained strong throughout the year. The third spot on the list is held by Israel's Tel Aviv, which had occupied the top position in last year's ranking.
How do other countries in Asia fare?
As for the rest of Asia, the inflation rate for the continent in 2022 stood at 4.5% yesterday, which is lower than the global average. Despite this, Singapore still maintained its position at the top of the list due to its high inflation rate.
In contrast, six cities in China saw an increase in rankings, with Shanghai breaking into the top 20. Japan is also faring well with low interest rates, and both Tokyo and Osaka ranking at 24th and 33rd places, respectively.
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Expert Opinion
The increase in fuel prices by 22% in 2022 will have a cascading effect on the cost of living, including utilities, essential goods, and electricity, which will also see an uptick this year. Upasana Dutt, the Head of Worldwide Cost of Living at EIU, stated that "The war in Ukraine, Western sanctions against Russia, and China's zero-covid policy have resulted in supply chain disruptions that, combined with rising interest rates and changing exchange rates, have resulted in a cost-of-living crisis worldwide."
He further mentioned, "The impact is evident in this year's index, with the average price increases across the 172 cities in our survey being the most robust we have seen in the 20 years of digital data at our disposal. As supply bottlenecks begin to ease and a slowing economy weighs on consumer demand, we anticipate prices to begin to ease in the upcoming year."