Singapore has clinched the top spot as the world’s most expensive
Mumbai : Singapore has toppled Tokyo from the top spot as the most expensive city to live in 2014 according to a survey conducted by the Economist Intelligence Unit (EIU).
The city’s strong currency combined with the high cost of running a car and soaring utility bills contributed to Singapore topping the list. It is also the most expensive place in the world to buy clothes, reports BBC. “Singapore’s rising price prominence has been steady rather than spectacular,” said a report.
“Singapore’s rise is partially attributable to the continued strength of the Singapore dollar, but the city has seen price rises too which have no doubt been compounded by a reliance on imports,” Jon Copestake, editor of EIU report, said in a statement.
Along with Singapore, other cities to make it to the most expensive city top 10 list are Paris, Oslo, Zurich, Sydney, Caracas, Geneva, Melbourne, Tokyo and Copenhagen.
The survey also lists cities which are not so expensive. India’s major metropolitan cities Mumbai and Delhi (which are considered extravagant by us Indians) are at the bottom of the survey listed as the least expensive. Mumbai is ranked last, while Delhi is the third cheapest.
“Although India has been tipped for future growth, much of this is driven by its large population and the untapped potential within the economy,” says the EIU, according to CNN.
“Income inequality means that low wages proliferate, driving down household spending and creating many tiers of pricing that keep per capita spending low.”
“This, combined with a cheap and plentiful supply of goods into cities, as well as government subsidies on some products, has kept prices down, especially by Western standards.”
The survey is based on a compilation of price information of more than 160 items-from food, toiletries and clothing to domestic help, transport and utility bills in 131 cities, according to theonlinecitizen.com.
“The cost-of-living index uses an identical set of weights that is internationally based and not geared toward the spending pattern of any specific nationality,” says the EIU. “Items are individually weighted across a range of categories and a comparative index is produced using the relative difference by weighted item.”