According to this year’s Global Cost of Living Index released by the Economist Intelligence Unit (EIU), the average cost of living increased by 8.1% in 2022, mainly due to the war in Ukraine and the prolonged effects of the pandemic.
“The war in Ukraine, Western sanctions on Russia, and China’s zero-Covid policies have caused supply chain issues that, combined with rising interest rates and changes in exchange rates, have resulted in a global cost of living crisis,” explains Upasana Dutt, head of global cost of living at EIU, in a press release.
She added: “We can clearly see the impact in this year’s index, with the average price increase across the 172 cities in our survey being the strongest we’ve seen in the 20 years for which we have digital data. The rise in gasoline prices in cities was particularly strong (as it was last year), but food, utilities, and household goods are becoming more expensive for city dwellers.”
So, in an expensive year for everyone, which are the most expensive cities to live in?
There are four European cities in the top 10 – Zurich (sixth place) was the highest on the continent, with Paris, Copenhagen, and the Swiss city of Geneva completing the rest.
New York, which has been part of this list in previous years, ranks first for the first time. Those living in the city will not be surprised. However, the largest city in the United States shares the title of the most expensive city in the world with Singapore.
Two other American metropolises also made it to the top 10 – Los Angeles tied for fourth place with Hong Kong and San Francisco in eighth.
In total, 22 of the 172 cities tracked annually by the EIU are in the U.S., including Portland, Boston, Chicago, and Charlotte.
Meanwhile, last year’s winner, Tel Aviv, fell to third place.
The 10 most expensive cities in the world to live in 2022, according to the EIU:
1. New York and Singapore (tie)
3. Tel Aviv, Israel
4. Hong Kong and Los Angeles (tie)
6. Zurich, Switzerland
7. Geneva, Switzerland
8. San Francisco, California
9. Paris, France
10. Copenhagen, Denmark