EIU releases Cost of Living Index 2021

Context

The Economic Intelligence Unit recently released the Cost of Living Index 2021. According to the report, Tel Aviv in Israel is the most expensive city in the world. 

Key-Findings

• Tel Aviv is the world’s most expensive city. It was followed by Paris in second place and Singapore in third place.
• In 2020, Paris was the most expensive city according to the index.
• In 2021, Zurich and Hong Kong were at fourth and fifth places respectively.
• Overall, the upper rankings were dominated by developed Asian cities and European cities.
• The lowest rankings were occupied by cities in Africa, Middle East and less wealthier parts of Asia.
• The index is benchmarked against prices in New York City, hence cities with currencies that are stronger against the US dollar are likely to appear higher in the rankings.
• The 2021 Cost of Living index tracks the cost of living across 173 global cities and compares the price of more than 200 everyday products and services.
• In India, Ahmedabad, Gujarat has been listed in the top ten cheapest cities of the survey.
• Among the cheapest cities, Damascus (capital of Syria) is at the top. It is followed by Tripoli (Libya,) Tashkent (Uzbekistan), Tunis (Tunisia) and Almaty (Kazakhstan') in the ranking of cheapest cities.
• The highest price rise was reported in the Iranian city Tehran. It jumped from 79th rank in 2020 to 29thrank in 2021. This was mainly due to US sanctions. The US sanctions led to shortages and higher prices.