Hong Kong, Paris and Zurich shared the first place in the list of the most expensive cities in the world, compiled by the Economist Intelligence Unit (EIU), an analytical division of the British magazine The Economist.
Paris and Zurich displaced Singapore and Osaka from the first place, rising from the fifth place they previously shared.
It is noted that prices in Singapore fell against the background of the outflow of foreign labor due to the pandemic. Singapore's population shrank for the first time since 2003, leading to lower demand and deflation.
The largest price increase was recorded in Tehran, which is explained by US sanctions that affected the supply of goods. As a result, the Iranian capital moved to 79th from 106th place in the rating.
The index, which tracks changes in the cost of living, decreased the most in the Brazilian cities of Rio de Janeiro and Sao Paulo, which fell 23 places in the ranking to 119th place. EIU links this with the weakening of the national currency and the growth of the poverty level.
According to the EIU report, the cost of living decreased compared to last year in the countries of North and South America, Africa and Eastern Europe, while living in Western European cities became more expensive, which, in particular, is connected with the strengthening of the euro against the US dollar.
EIU predicts that many price trends will persist in 2021. "Since the global economy is unlikely to reach the pre-pandemic level by 2022, spending will remain limited and prices will experience downward pressure," the report says.
EIU calculates cost-of-living indices for 133 cities around the world twice an hour, using New York's cost of living as a starting point. Experts consider prices for more than 400 items of goods and services in 138 categories.
