Singapore and New York are jointly the most expensive cities to visit and live in for the year 2022, according to The Economist Intelligence Unit (EIU). They are followed by Tel Aviv in the third place, while the Hong Kong and Los Angeles jointly occupy the fourth spot among the world’s most expensive cities.

Cosmopolitans such as Singapore, New York, and Paris contrast sharply with the cheapest cities in the world in terms of their cost of living. The Worldwide Cost of Living survey, conducted bi-annually by EIU, includes 172 cities worldwide.  

10 Most Expensive Cities in 2022

The ten most expensive cities in the world are mainly found in Asia, Europe, or North America, while none of the cities from South America or Africa make it to the list. The most costly cities are ranked, along with their index scores, as follows.

  • Singapore (Singapore) – 100
  • New York (USA) – 100
  • Tel Aviv (Israel) – 99
  • Hong Kong (China) – 98
  • Los Angeles (USA) – 98
  • Zurich (Switzerland) – 94
  • Geneva (Switzerland) – 91
  • San Francisco (USA) – 85
  • Paris (France) – 84
  • Copenhagen (Denmark) – 83
  • Sydney (Australia) – 83
Paris is jointly the fifth most expensive city in the world in 2020
Paris is the ninth most expensive city in the world in 2022

Cities Getting Costlier

Two factors play an important role in determining these rankings: inflation and currency fluctuations. An increase in the average price level of basic goods and services, as well as an increase in the value of the local currency, both contribute to the costliness of a city. In 2020, for instance, Istanbul (Turkey) moved 24 places up as a result of the relative strengthening of the lira following its sharp decline in 2018.

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In 2022, the biggest upward movers have been the Russian cities of Moscow and St Petersburg, having moved up the rankings drastically by 88 and 70 places, respectively. On one hand, the value of the Russian ruble has increased due to factors such as import reduction and wider adoption of the currency for international payments; on the other hand, Western sanctions on Russia have also increased prices in the wake of the war between Russia and Ukraine.

The next four cities with the greatest increase in the cost of living compared to last year are all from the United States due to strengthening of the US dollar: Atlanta, Charlotte, Indianapolis, and San Diego.

South Korea's capital, Seoul, has dropped out of the 10 most expensive cities in 2020 due to currency depreciation
South Korea’s capital, Seoul, has dropped out from the top 10 list in recent years due to currency depreciation

Global Cost of Living   

The average global cost of living has risen by around 8.1% in local-currency terms in 2022 compared to the previous year. This is the highest rate over the past two decades, driven in part by the effects of the war in Ukraine and the covid-19 restrictions in China that were in place during 2022.

Prior to this year, the average global cost of living had generally fallen due to factors such as the impact of easing monetary policy on global currencies, the US-China trade war and the uncertainty surrounding it, and the strength of the US economy. The oil prices are another major factor impacting the cost of living in major cities around the world.

Ranking Methodology

The rankings are based on a bi-annual survey by The Economist Intelligence Unit, a sister company of The Economist newspaper. The survey compares over 400 individual prices for 160 goods and services in 172 major cities around the world. These products include food, clothing, home rents, utility bills, transport, personal care items, recreation, and private schools, among other categories. The gathered prices are then converted into the US dollar and are weighted identically across all cities to create a comparative index.

You can download the Worldwide Cost of Living 2022 report after registering on The Economist Intelligence Unit website.