Gulliver | Worldwide Cost of Living

The expenses of Japan

Tokyo is still the most expensive city in the world

By A.B.

TOKYO is still the most expensive city in the world according to the latest Worldwide Cost of Living survey from the Economist Intelligence Unit. The Japanese capital retains the position it won last year. (It had previously held the top spot until 2006, before its demotion by Oslo and, later, Paris.) The strength of the yen is mainly responsible for Tokyo's current ranking, as it is for Osaka Kobe's third place. Indeed, a kilo of white rice that would cost $1.77 in Hong Kong and $3.42 in New York will set you back an eye-watering $7.96 in Tokyo.

The twice-yearly survey of 133 cities derives its figures from a weighted average of the costs of 160 products and services, from a loaf of bread to a luxury car. New York's figure is set to 100 to provide a base index for comparisons.

The relative weakness of the dollar has sent American cities slipping down the ranking, and none are in the top 40. New York, which was seventh back in 2001, has dropped from 36th place in 2010 to 49th. European cities accounted for 13 of the 20 most expensive destinations.

Most expensive cities in the world (New York = 100): 1. Tokyo 161 2. Oslo 156 3. Osaka Kobe 153 4. Paris 150 5. Zurich 148

UPDATE, July 12th: Mercer, a consulting company, has just released its annual ranking of the cost of living for expats around the world. This list has a more African focus than the Economist Intelligence Unit's. Luanda, the capital of Angola, and N'Djamena, the capital of Chad, remain in first and third places, separated by Tokyo. When Mercer released its 2010 ranking, a colleague explained why the likes of Luanda were so expensive for visitors. Moscow and Geneva round out the top five of Mercer's survey, which ranks 214 cities according to the cost of a basket of some 200 items that include “housing, transport, food, clothing, household goods and entertainment”.

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