World Cost of Living Rankings 2011
Luanda in oil rich Angola continues as number one in the ranking as the world’s most expensive city. In fact the top six places remain unchanged from 2010 according to the latest Cost of Living Survey released in July from Mercer Human Resource Consulting, the global leader for HR and related financial advice. London drops just one place from 17th place to 18th. Karachi continues to be considered the world’s least expensive city.
The survey covers 214 cities across five continents and measures the comparative cost over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment. New York is used as the base city and currency movements are measured in US dollars. New York has dropped from 27th place to 32nd.
New entries in the top 10 list are Singapore (8), up from 11, and Sâo Paulo (10), which has jumped 11 places since the 2010 ranking. Recent world events, including natural disasters and political upheavals, have impacted the rankings for many regions through currency fluctuations, cost inflation for goods and services and volatility in accommodation prices.
Interestingly the European cities have three out of the top ten most expensive cities compared with four from the previous year. Moscow remains the most expensive city in Europe with Geneva and Zurich following close behind. Switzerland still has three cities in the top ten ranked in Europe.
Australian cities have witnessed some of the most dramatic jumps in the ranking as the local currency has gained almost 14% against the US dollar. Sydney (14) is up 10 places whilst Perth has surged 30 places to reach 30th spot. A significant increase in rental prices has also pushed up the cost of Australian cities.
Top Ten World Ranking
| 2011 Ranking | City | Country |
| 1 | Luanda | Angola |
| 2 | Tokyo | Japan |
| 3 | Ndjamena | Chad |
| 4 | Moscow | Russia |
| 5 | Geneva | Switzerland |
| 6 | Osaka | Japan |
| 7 | Zurich | Switzerland |
| 8 | Singapore | Singapore |
| 9 | Hong Kong | China |
| 10 | Sao Paulo | Brazil |
Top Ten European Ranking
| 2011 Ranking | City | Country |
| 1 | Moscow | Russia |
| 2 | Geneva | Switzerland |
| 3 | Zurich | Switzerland |
| 4 | Oslo | Norway |
| 5 | Bern | Switzerland |
| 6 | Copenhagen | Denmark |
| 7 | London | UK |
| 8 | Milan | Italy |
| 9 | Paris | France |
| 10 | St. Petersburg | Russia |
Article taken from Capital Consulting's newsletter, Taxing Issues