Israel, Tel Aviv: The upheaval at the top of the ranking, Tel Aviv has supplanted Paris and Singapore as the most expensive city in the world, according to an annual study by “The Economist,” which points out that supply chain problems have driven up prices in many cities. “In fifth position last year, Tel Aviv becomes the most expensive city in the world” for the first time, notes the weekly.
This position reflects “the strength of the Israeli currency, the shekel, against the dollar, because the index takes prices in New York as a basis for comparison,” the study said. “After sharing first place with Zurich and Hong Kong in 2020, Paris is falling to second position, which it occupies with Singapore in this new edition,” notes the British media.
He points out that the measured price increase is the fastest recorded for five years, at 3.5%. ” Supply chain problems have contributed to the rise in prices, the Covid-19 and social restrictions still weighing on production and trade around the world”, notes “The Economist”.
At the other end of the spectrum, Damascus remains the cheapest city in the world due to a currency that crumbles against the dollar and consequently prices in greenbacks which plunge, the civil war continuing to decimate the economy local. The Syrian capital is under very high inflation just like Caracas, Buenos Aires and Tehran . The latter thus recorded the strongest advance in the standings, from 79th to 29th place, the American sanctions leading to shortages and price increases.
“In general, the top of the ranking remains dominated by European cities and developed Asian cities, while North American and Chinese cities keep relatively moderate prices,” said the study. Transportation costs have soared in the wake of gasoline prices, the study notes, but tobacco and entertainment have also seen sharp price increases. The cheapest cities – in dollars – are found mostly in the Middle East, Africa or poorer parts of Asia.
“Over the coming year, we expect the cost of living to increase even more in many cities as wages rise in several sectors,” notes Upasana Dutt, the study director. “However, we expect central banks to raise key rates cautiously to curb inflation. Price increases should therefore begin to ease,” she believes.