Save
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed.

What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed.

Paris and Zurich have joined Hong Kong in becoming the three most expensive cities in the world, according to the latest Cost of Living Index from the Economist Intelligence Unit (EIU).
The index compared the prices of 138 goods and services from some 130 cities in September 2020 and found that prices on average grew 0.3 per cent over the past year.
The European cities have leapfrogged over Singapore and Osaka, which tied with Hong Kong in the previous survey conducted in March.
The changes are due to the COVID-19 pandemic, which has seen prices fluctuate around the world.
Currency fluctuations due to the pandemic means destinations in Africa, the Americans and Eastern Europe became less expensive since March, while Western Europe, where the Euro has risen in value against the US dollar have seen price rises.
A mass exodus of foreign workers has seen Singapore fall to fourth in world rankings, while Osaka has fallen with Tel Aviv now tying for fifth place.
Geneva, New York City, Copenhagen and Los Angeles round out the top 10.
Sydney is now the 15th most expensive city, while London ranked 20th in the world.
Largest cost of living rises
While Paris and Zurich are the most expensive cities in the world, the biggest cost-of-living increases were in Tehran and Perth.
The index showed the cost-of-living in Perth increased compared with other major cities as the Western Australian capital climbed 12 places to 67th most expensive city in the world.
Only Tehran made a bigger leap up the ladder – climbing 27 rungs to 79th place due to the reduced supply of goods (and subsequent price increases) caused by US sanctions.
Costly cigarettes, cheap clothes
While the prices of packaged goods, such as coffee, cheese, rice and orange juice, rose across most cities in the latest worldwide cost of living survey, the average index for the food and grocery category remained flat.
Logistical challenges also affected prices, with shortages of goods such as toilet roll and pasta fuelling price rises in some categories.
Of the 10 categories covered by the report, tobacco and recreation saw the biggest price increases, while clothing prices have seen the steepest decline.
The mean index for tobacco reported the highest year-on-year increase for any non-durable goods.
All five Australian cities saw double-digit increases in the tobacco index.
About the author

About the author


Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more

Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more

Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more

Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more

Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more

Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more

Expenses
The financial products giving Australians the most grief during COVID-19
The Australian Financial Complaints Authority (AFCA) has received 7,420 complaints about financial products since the onset of the pandemic. ...Read more

Expenses
Tips for managing your finances during a recession
When a recession hits, it’s natural to be concerned. After all, an economic recession can spell disaster for your financial welfare. ...Read more

Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more

Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more

Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more

Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more

Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more

Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more

Expenses
The financial products giving Australians the most grief during COVID-19
The Australian Financial Complaints Authority (AFCA) has received 7,420 complaints about financial products since the onset of the pandemic. ...Read more

Expenses
Tips for managing your finances during a recession
When a recession hits, it’s natural to be concerned. After all, an economic recession can spell disaster for your financial welfare. ...Read more