Cost of Living Survey ranks Kathmandu as world’s sixth cheapest
Posted in NEWS on Feb 15, 2012 | no responses

Zurich has overtaken Tokyo to rank as the world’s most expensive city for the first time in 20 years, according to the Economist Intelligence Unit’s latest Worldwide Cost of Living Survey. The Swiss city was joined in the top five by Geneva, which rose to third place to tie with Osaka.

Whilst Switzerland has long been home to some of the priciest places to live, its upswing in the rankings can be attributed to the heavy investment in the Swiss franc, which is seen as a relatively safe currency outside of the embattled Eurozone, according to the report. Local price inflation in Switzerland has been low, but the report explained that “local inflation in mature markets always has far less influence on the relative cost of living than the currency movements of the countries in question.”

Cities in the Asia-Pacific make up half of the top ten—in addition to Tokyo and Osaka, Sydney and Melbourne placed seventh and eighth, respectively, followed by Singapore. Seoul climbed 13 places over the last year to 27th place, and Chinese cities are also increasingly expensive, with Shanghai surpassing New York by two places to rank 42nd.

Hong Kong, which has long been noted as an expensive place to live, is surprisingly ranked at 22, much lower than its third-placed position a decade ago. The report attributed this to Hong Kong’s currency peg to the weak U.S. dollar, enabling price increases to not be compounded by exchange rate appreciation.

At the same time, deals can still be found in Asia, as other Asian cities rank as the cheapest places to live. Mumbai and New Delhi in India, and Karachi, Pakistan rank in the bottom five, due to cheap labor and land costs. The report said these factors are “why India has been such a target of labor outsourcing, relocation, and foreign direct investment over the last decade,” although it notes that these advantages are accompanied by certain security risks.

The survey, which is conducted twice a year, compares hundreds of prices across 160 products and services, including food, household supplies, transport, utilities, and schooling.

Rank(Top 10) City Country WCOL index (New York= 100)
1 Zurich Switzerland 170
2 Tokyo Japan 166
3 Geneva Switzerland 157
4 Osaka Japan 157
5 Oslo Norway 156
6 Paris France 150
7 Sydney Australia 147
8 Melbourne Australia 145
9 Singapore Singapore 142
10 Frankfurt Germany 137
Rank(Bottom 10) City Country WCOL index (New York= 100)
120 Muscat Oman 63
123 Dhaka Bangladesh 61
124 Algiers Algeria 59
125 Kathmandu Nepal 58
125 Panama City Panama 58
127 Jeddah Saudi Arabia 57
128 New Delhi India 56
129 Tehran Iran 54
130 Mumbai India 52
131 Karachi Pakistan 46

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