Most expensive cities in 2023
- Zurich and Singapore
- New York and Geneva
- Hong Kong
- Los Angeles
- Paris
- Tel Aviv and Copenhagen
- San Francisco
In a development that may not be unexpected for those grappling with financial challenges, the global cost of living crisis persists, particularly impacting residents of major cities. The Economist Intelligence Unit’s (EIU) annual Worldwide Cost of Living Index reveals a 7.4% increase in the average cost of living this year, with grocery prices experiencing the most significant surge. While this uptick is slightly lower than the 8.1% recorded in the 2022 survey, it remains markedly higher than historical trends.
Encouragingly, utility prices, which exhibited the fastest rise in the 2022 survey, demonstrated the least inflation this time. Upasana Dutt, Head of Worldwide Cost of Living at EIU, expressed optimism, stating, “We expect inflation to continue to decelerate in 2024, as the lagged impact of interest-rate rises starts affecting economic activity, and in turn, consumer demand.”
Singapore and Zurich in Switzerland secured the top spots as the most expensive cities globally. The report attributes the decline of Chinese cities, such as Beijing, which dropped several places from its 34th position last year, to the slow post-pandemic recovery and subdued consumer demand.
On the other end of the spectrum, Damascus, Syria, maintains its position as the world’s most affordable city. Tehran, Iran, and Tripoli, Libya, rank 172nd and 171st, respectively. Notably, US cities lead in terms of utility, domestic help, and tobacco costs, while Western European cities top the list for recreation, transport, and household goods expenses.
The 2023 Worldwide Cost of Living surveyed 173 major cities, examining over 400 individual prices across 200 products and services. Venezuela’s Caracas was excluded from the survey due to a staggering 450% price increase since 2022.
