Zurich and Paris have joined Hong Kong to become the world's 3 most expensive cities – all thanks to COVID-19. Here's the full list.
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The Worldwide Cost of Living (WCOL) annual report from the Economist Intelligence Unit (EIU) revealed Wednesday that Singapore and Osaka, that were both joint-first in 2019, have tumbled down the rankings to fourth and fifth place respectively.
The WCOL index examined the cost of living in 133 cities worldwide since the start of the year, amid the coronavirus pandemic.City | Rank | Rank Movement | WCOL Index |
Zurich | 1 | 4 | 103 |
Paris | 1 | 4 | 103 |
Hong Kong | 1 | 0 | 103 |
Singapore | 4 | -3 | 102 |
Tel Aviv | 5 | 2 | 101 |
Osaka | 5 | -4 | 101 |
Geneva | 7 | 3 | 100 |
New York | 7 | -3 | 100 |
Copenhagen | 9 | 2 | 96 |
Los Angeles | 9 | -1 | 96 |
Upasana Dutt, the head of Worldwide Cost of Living, told Business Insider that 2020 has clearly been "more unusual" than previous years.
"The coronavirus pandemic has impacted spending habits all over the world, with the prices of essential goods proving more resilient than those deemed non-essential," Dutt said.The WCOL report said prices in Singapore dropped because of so many foreign workers leaving the
The largest price gains in US dollars were in Iran's capital Tehran, which climbed nearly 30 places, from 106th place to 79th position. According to the report, this is down to US sanctions stopping some imports, impacting the supply of goods.
Brazilian cities and São Paolo saw the biggest price drops, which reflects the rising poverty levels and weak currencies, the report showed. They sit equal at 119th place on the index.
"Zurich has additionally seen some trends around higher rentals," said Dutt. Even routine medical check-ups have risen in dollar terms in Paris and Zurich, she added.
The report said this partly demonstrates the strength in European currencies against the US dollar.As well as local currency exchange-rate movement against the dollar causing many of the changes, the report indicated that a drop in disposable income and lifestyle changes, such as essential shopping, were also key players.
In addition, the report claims government responses to the coronavirus altered the price changes. Certain governments raised taxes to offset revenue shortfalls. Others, such as Argentina, introduced price controls on products due to the high demand from panic buying.When asked whether the list will revert back to normal after the pandemic, Dutt said it depends on multiple aspects, including how the supply chain issues are sorted. "Prices depend a lot on inflation and exchange rates, which rely to a large extent on central bank policies," she added.
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