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Check out the most expensive cities in the world to live in 2022

It seems like every month when household bills are due we complain about how the cost of living has risen again.

But it’s not just anecdotal. According to this year’s World Cost of Living Index, released by the Economist Intelligence Unit (EIU), the average cost of living increased by 8.1% in 2022, due to the Russian war in Ukraine and the lingering effects of the pandemic.

In other words — no, it’s not just you.

“The war in Ukraine, Western sanctions on Russia and China’s Covid-zero policies have caused supply chain issues which, combined with rising interest rates and changes in exchange rates, have resulted in a cost of living crisis. all around the world”. Upasana Dutt, head of worldwide cost of living at the EIU, in a press release.

She added: “We can clearly see the impact on this year’s index, with the average price increase across the 172 cities in our survey being the strongest we’ve seen in the 20 years for which we have digital data. The rise in gasoline prices in cities has been particularly strong (like last year), but food, utilities and household items are getting more expensive for city dwellers.”

So, in an expensive year, what are the most expensive cities to live in?

Europe in transition

The EIU, which tracks everyday expenses in 172 cities around the world, is headquartered in London. The British capital dropped significantly on the list this year, coming in at 27th place.

There were four European cities in the top 10 – Zurich (sixth) was highest, with Paris, Copenhagen and the Swiss city of Geneva rounding out the rest.

The most significant cause of price increases in Western Europe was rising gas prices, a result of the ongoing Russian war in Ukraine and the region trying to find alternative sources of gas. The cost of a liter of gasoline increased by 22% over the same period last year.

Unsurprisingly, the Russian cities of Moscow and St Petersburg saw significant increases in the cost of living, while Ukraine’s capital Kyiv was not analyzed this year.

In addition to gas costs, one factor cited by the EIU was the uneven value of the euro, used by some but not all European cities on this year’s list – the UK is in the pound and Switzerland is in the franc.

Three other cities in Europe — Stockholm, Lyon and Luxembourg — also made the list.

a first winner

While it seems like New York City should already top the list, this is the first time the biggest city in the US has taken the top spot — albeit tied with frequent winner Singapore.

In the 2021 accounting, New York ranked sixth.

Two other American metropolises also made the top 10 — Los Angeles tied for fourth with Hong Kong and San Francisco for eighth.

In total, 22 of the 172 cities the EIU tracks annually are in the US, including Portland, Boston, Chicago and Charlotte. Each of those 22 experienced a rise in inflation this year.

Meanwhile, last year’s winner Tel Aviv slipped to third place.

How the list is made

To create the list, the EIU compares more than 400 individual prices on more than 200 products and services in 172 cities. They research a variety of companies, both high- and low-cost, to get a sense of how much prices have fluctuated over the past year.

Another company, global mobility company ECA International, annually publishes its own ranking of the world’s most expensive cities. The ECA list uses a slightly different methodology, looking at everyday expenses like rent and the cost of public transport, and does not include luxury goods in its calculations.

Their list, published in June, made Hong Kong the most expensive city for the third consecutive year and New York second. However, the ECA list skews heavily towards Asia’s big cities, as Seoul, Shanghai and other East Asian urban centers made it into the top 10.

The EIU list is compared to prices in New York City, so cities with stronger currencies against the US dollar are likely to appear at the top of the rankings.

The 10 most expensive cities in the world to live in 2022

1. New York and Singapore (tie)
3. Tel Aviv, Israel
4. Hong Kong and Los Angeles (tie)
6. Zurich, Switzerland
7. Geneva, Switzerland
8. San Francisco, California
9. Paris, France
10. Copenhagen, Denmark

Source: CNN Brasil

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