The most expensive cities in the world

The basic problem with all four surveys is that they convert local prices into US dollars, which means that any changes are as much the result of currency fluctuations as of price inflation. For example according to all four surveys, the cost of living in cities outside the US dollar zone becomes more expensive if the dollar weakens against local currencies even when prices remain unchanged or indeed fall.

Research by ECA International

Inflation has been seen in most locations worldwide over the past six months, with food and petrol prices, particularly, increasing quite considerably. According to ECA data, China saw pork prices increase by a further 19 per cent between September 2007 and March 2008, while the cost of egg noodles increased by almost 15 per cent in Singapore.

Rice in India is now 11 per cent more expensive than 6 months ago while in that same period potatoes have increased 4 per cent in the UK, pasta went up almost 12 per cent in Italy and, in Australia, the price of a bottle of white wine rose 7 per cent. The cost of petrol has gone up more than 13 per cent in Hong Kong and Singapore, and by almost 11 per cent in Australia over the last 6 months.

For expatriates, particularly those paying with US dollars, Angola’s capital Luanda is the most expensive city in the world. The cost of living for those hankering after imported food rather than local produce is higher in this African metropolis than in Tokyo, Paris or London.

ECA International, which carried out the research, explained that its cost of living survey compared a basket of 128 consumer goods and services commonly purchased by expatriates in over 370 locations worldwide. “Certain items and brands typically purchased by expatriates, can be very expensive in a location such as Luanda where they are not readily available locally.”

The ECA ranking placed Oslo second, followed by Stavenger, another Norwegian city. Denmark's Copenhagen was in fourth place. Moscow ranked fifth. Places six to ten include four Swiss cities – Geneva, Zurich, Basel and Bern – as well as Libreville, Gabon’s capital.Tokyo (13th overall) is the most expensive city in Asia, overtaking last year’s most expensive Asian location, Seoul, which has fallen to 18th place due, largely, to the appreciation of the Yen against the US dollar over the past six months.

in http://www.citymayors.com/statistics/expensive-cities-world.html