Most Expensive Cities Redux Again

London is the most expensive city in the world
while Swiss cities are home to highest earners
A report by UBS

The world's most expensive cities in 2006
Life is expensive in London, New York and Oslo

Oslo, London and Copenhagen are the three most expensive cities in our comparison of living costs in 71 metropolises. Including rent, which makes up around a fourth (housing and energy costs) of living expenses in a Western European household, London and New York are the most expensive places to live by a wide margin. It’s no wonder that their residents often tolerate extreme commutes in order to find affordable housing. The cheapest cities we examined in our basket of 95 goods and 27 services – around a third less than the Western European average – were in Africa and Eastern Europe.

Prices vary within city limits as well

How is it possible that Hong Kong has slipped to the median price range in three years? And also the two other Chinese cities – Shanghai and Beijing – are no higher in the rankings than three years ago, either, despite the country’s impressive economic growth. One reason for this is certainly that China won’t subject its own currency to free market forces, since a revaluation of the renminbi could have a negative affect on the competitiveness of its export industry. Yet the price data from Hong Kong and Shanghai also show that the price of food, services and household goods can vary widely within city limits. Prices may differ depending on the part of town, but also on the person who collects the data. An Asian economics student “saved” around 10 per cent compared to our local employees, and even more compared to European expatriates working in Hong Kong. There is more than one price level – this applies to most cities. Our shopping basket reflects the average consumption patterns of a average family living in the West. The effective cost of living in one city may vary considerable depending on the area, lifestyle or life cycle. (Report by USB)

Rank	Cities	Index (incl rents)
1	London	105.5
2	New York	100.0
3	Oslo	94.6
4	Tokyo	93.4
5	Zurich	87.3
6	Copenhagen	86.3
7	Geneva	85.8
8	Dublin	84.3
9	Chicago	82.2
10	Los Angeles	80.6
11	Paris	78.1
12	Helsinki	77.3
13	Luxembourg	76.6
14	Stockholm	75.8
15	Vienna	74.0
16	Seoul	73.9
17	Amsterdam	73.0
18	Hong Kong	73.0
19	Toronto	71.4
20	Munich	71.2
21	Montreal	71.2
22	Miami	70.5
23	Frankfurt	69.3
24	Sydney	69.0
25	Brussels	68.5
26	Milan	68.5
27	Rome	67.6
28	Madrid	66.2
29	Nicosia	66.2
30	Dubai	66.1
31	Lyon	66.0
32	Barcelona	65.6
33	Berlin	64.4
34	Singapore	62.9
35	Lisbon	62.1
36	Istanbul	61.6
37	Mexico	60.7
38	Auckland	60.6
39	Athens	57.4
40	Taipei	57.2
41	Moscow	56.8
42	Tel Aviv	55.2
43	Rio de Janeiro	55.1
44	Manama	54.8
45	Santiago de Chile	54.3
46	Sao Paulo	53.6
47	Caracas	52.8
48	Warsaw	49.5
49	Ljubljana	48.7
50	Tallinn	48.6
51	Johannesburg	47.2
52	Budapest	46.7
53	Jakarta	44.4
54	Bucharest	43.3
55	Prague	42.6
56	Bogotá	42.3
57	Buenos	41.9
58	Mumbai	41.5
59	Bangkok	41.0
60	Kiev	40.6
61	Riga	40.2
62	Sofia	40.0
63	Nairobi	39.7
64	Bratislava	39.6
65	Beijing	39.6
66	Shanghai	39.3
67	Vilnius	37.7
68	Lima	35.9
69	Manila	35.2
70	Delhi	34.6
71	Kuala Lumpur	28.2

Methodology: The cost of a weighted shopping basket geared to Western european consumer habits, containing 122 goods and services. New York = 100.