According to the Economist Intelligence Unit (EIU), Israel’s Tel Aviv has surpassed Hong Kong and Singapore to become the world’s most expensive cities to live in. Owing to the rapid rise in inflation. It has pushed up the cost of a wide range of goods and services worldwide in the aftermath of the coronavirus pandemic. The Israeli city climbed five places in the last year to become one of the most expensive cities. In order to dethrone last year’s joint winners, Paris, Hong Kong, and Zurich.
The soaring shekel, as well as price increases for goods such as groceries and transportation, were major factors in Tel Aviv’s victory. The reports suggest prices for goods and services studied across cities increased by 3.5 percent year on year in local currency terms, compared to 1.9 percent the previous year. Inflation was at its highest in five years. Higher oil prices increased the price of unleaded gasoline by 21%, making transportation the most expensive.
The French capital was tied for second place with Singapore. Zurich and Hong Kong round out the top five. New York was ranked sixth, Geneva was ranked seventh, and Copenhagen, Los Angeles, and Osaka rounded out the top ten. London rose three places to 17th in the annual ranking. While Sydney rose one to 14th and Melbourne rose two places to 16th. Tel Aviv was ranked second in terms of alcohol and transportation. It was fifth in terms of personal care and sixth in terms of recreation. It came in third place in all ten of the EIU’s major spending categories. Along with its index score increased by 5 points since last year.
We can clearly see the impact in this year’s index, with the rise in petrol prices particularly
The global economy’s dislocation as it recovers from the stop-start impact of pandemic-enforced lockdowns this year played a significant role in the rankings’ reshuffling. Energy and food prices have skyrocketed in some countries. As a result of trade restrictions, labor shortages, and ongoing supply chain bottlenecks. According to the survey, the average price of a liter of unleaded gasoline has risen by 21%. The information on 50,000 goods and services was gathered in 173 cities in August and September, as freight and commodity prices rose. Prices rose 3.5 percent on average in local currency terms. It has the fastest rate of inflation recorded in the last five years.
Upasana Dutt, head of worldwide cost of living at the EIU, said: “We can clearly see the impact in this year’s index, with the rise in petrol prices particularly stark.” Adding that while central banks are expected to raise interest rates cautiously, reducing inflation. Damascus was named the world’s cheapest city to live in, followed by Tripoli, Libya, and Tashkent, Uzbekistan’s capital.
