The Worldwide Cost of Living 2023 survey revealed the average annual increase in local currency costs for over 200 regularly used products and services was 7.4%. Although this is less than the record 8.1% increase from the previous year, price growth is still far greater than the trend from 2017-21. While 173 of the world’s main cities are covered in this year’s poll, as was the case last year, Kyiv and Caracas have been left out of the worldwide average calculation. Here’s all about the Worldwide Cost Of Living in 2023, expensive cities and more!
Worldwide Cost Of Living 2023 List
According to this year’s report, the most costly cities were Zurich and Singapore. New York, which matched with Singapore for first place the previous year, dropped to third place as Zurich rose from sixth place to the top. The strength of the Swiss Franc and the high cost of groceries, household goods, and leisure activities have helped Zurich, which has returned to the top spot after three years, climb up the rankings.
This year’s top ten includes Tel Aviv in Israel, three US cities, four European cities, and two Asian cities. Before the commencement of the Israel-Hamas conflict, the survey was carried out, which may have had an impact on costs by influencing exchange rates in Israel and making certain commodities more difficult to obtain in Tel Aviv.
Among the ten categories we surveyed, utility prices saw the slowest rate of inflation worldwide. This was the category with the fastest rate of growth in 2022, and the slowdown points to a reduction in the energy price shocks brought on by the Russia-Ukraine conflict. Conversely, the rate of price growth for groceries was the fastest.
Global food inflation has remained persistent because many producers and merchants have passed on increased prices to customers and because supply-side risks are still significant due to the growing frequency of catastrophic weather occurrences.
Top 10 Expensive Cities:
4. New York
5. Hong Kong
6. Los Angeles
8. Tel Aviv
10. San Francisco
Increase In Cost Of Grocery & Other Commodities
The findings show that the US Federal Reserve’s monetary policy approach has not only reduced supply-side pressures but also moderated national inflation. In addition, several other currencies have gained value in 2023 relative to the US dollar.
Due to these two variables, most of the 22 US cities that were included in our poll have slipped in the rankings. Three American cities—New York, Los Angeles, and San Francisco—are still in the top 10 even after that. Prices in New York increased by 1.9%. While costs increased for recreational activities and some supermarket goods, other prices stayed relatively low.
In contrast, cost of living in cities in Western Europe and Latin America has risen. Due to a combination of strong inbound investment and rising interest rates, the Peso proved to be one of the strongest emerging market currencies in 2023, propelling the Mexican towns of Santiago de Querétaro and Aguascalientes to the top of the rankings.
Despite persistent inflation and the strengthening of the Euro and other regional currencies, European cities have generally risen in the rankings. Prices in Asia are still rising, but not by much on average. Among the largest decliners in the rankings this year were two Japanese cities, Tokyo and Osaka, and four Chinese cities, Nanjing, Wuxi, Dalian, and Beijing.
Comment below and tell us what you think about this survey of expensive cities in the world.
Cover Image Courtesy: Canva
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