Graphics by ITAR-TASS
Experts at the Economist Intelligence Unit studied prices for goods and services in 132 cities worldwide (128 cities in 2006). Based on the ranking, the agency makes recommendations for its clients. The rating of this consulting company is considered one of the most objective since Economist examines prices for those goods and services that citizens pay for every day, rather than luxury goods.
In 2007, experts studied the cost of living based on data for 160 goods and services. Researchers compared prices for food, household goods, home appliances, transport services, utilities, and entertainment. In addition, the agency also takes into account inflation rates and exchange rates, consumer activity, investment levels, and overall economic growth or decline.
Oslo wrested the rather dubious honor of occupying first place in this ranking from Japan's Tokyo back in 2005. A year later, it merely confirmed its right to the top spot. The city, with a population of just over half a million, led Europe's assault on the Japanese capital. While Tokyo, with 12.5 million inhabitants, ranked second in 2005, by 2006 it had dropped to fifth. In second place is Paris, in third - Copenhagen.
London ranks fourth. In 2007, it confidently rose from seventh place, overtaking Tokyo and another 'Japanese city', Osaka, in the top ten. The increase in the cost of the British capital was driven by rising transport costs for residents. Meanwhile, prices in Tokyo barely rose over the year due to deflation in the country. The cheapest places to live in Europe are Athens and Lisbon, ranking 55th and 59th respectively.
Besides the cities already mentioned, the top ten includes Iceland's capital Reykjavik, Switzerland's Zurich, Germany's Frankfurt, and Finland's Helsinki. Thus, only two of the world's most expensive cities are located outside Europe.
The most expensive city outside Europe and Asia turned out to be the US financial capital - New York. Ranking 28th, it also became the most expensive city in the US. Incidentally, researchers take the prices of this city as a starting point for their study.
The closest US city to New York in the ranking is Chicago (36th place). Your wallet will fare best in the United States in Atlanta, which is the cheapest city in the country and ranks 84th in the Economist ranking. Life in Atlanta, which neighbors Moroccan Casablanca and Brazilian Sao Paulo in the ranking, requires half the expenses of Oslo.
Canada is not far behind the US. Vancouver edged out Chicago to take 34th place, Montreal at 36th. Latin America lives less lavishly: prices there are on average half those in New York. No Latin American city made the top 50, while 10 cities from the region are among the 30 cheapest places to live. The most expensive city in Latin America is Guatemala City at 63rd place. Mexico's capital Mexico City ranks 68th.
Asian cities vary greatly in cost of living. For instance, while Singapore (14th) and Seoul (11th) made the list of expensive cities, life in Bangkok (92nd) and Jakarta (72nd) is much cheaper. Among Middle Eastern countries, Israel's Tel Aviv (47th) remains the most expensive. In Africa, Nigeria's Lagos (59th) and the capital of Côte d'Ivoire, Abidjan (44th).
The cheapest city to live in, as in 2006, was Iran's Tehran. Also at the bottom of the ranking were Manila in the Philippines and Mumbai in India.
Moscow did not make the top ten most expensive cities: it ranks 26th. At the same time, prices in Moscow were only one point higher than in New York. Moreover, Moscow turned out to be the most expensive place to live in Europe outside the European Union. Other former USSR countries are far behind - Kazakhstan's Almaty ranks 111th, and Tashkent shares 120th place with Bulgaria's capital Sofia.
It is worth noting that Moscow has been steadily climbing in the Economist ranking - a year ago it was in 32nd place. Moreover, as Lenta.ru notes, the Russian capital, when viewed through the eyes of the Economist, still looks fairly reasonable. While prices here may just bite for locals, they threaten to bite off a hand for foreigners. For instance, according to the ranking by Mercer Human Resource Consulting, in 2006 Moscow was the most expensive city in the world for foreigners.