Most expensive cities for 2022: The annual Economist Intelligence Unit (EIU) list of expensive cities puts Copenhagen, Denmark, in 10th place.
9. Paris: The French capital fell from second place in 2021 to ninth this year.
8. San Francisco: The tech and startup hub is one of three American cities in the top 10.
7. Geneva: The only other country to have more than one appearance in the top 10 was Switzerland, with Geneva landing in seventh.
6. Zurich: ... and Switzerland's most populous city came in just one spot ahead, down from fourth in 2021.
4. Los Angeles (tie): The City of Angels was in ninth position last year.
4. Hong Kong (tie): Tying for fourth was the Asian financial hub of Hong Kong. The greater China region is still experiencing Covid-related lockdowns, which have affected supply chains.
3. Tel Aviv: Last year's list topper, the Middle East's lone representative in the top 10 slipped slightly.
1. New York (tie): Prior to 2022, the Big Apple, despite being known for its luxury goods and pricey real estate, has never been at the top of the list.
1. Singapore (tie): The city-state has topped the list several times before, but shares its dubious distinction in 2022.
The Economist's Most Expensive Cities 2022
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CNN —
It seems like every month when household bills come due, we grumble about how the cost of living has gone up again.
But it’s not just anecdotal. According to this year’s Worldwide Cost of Living Index, released by the Economist Intelligence Unit (EIU), the average cost of living is up 8.1% in 2022, owing to the Russian war in Ukraine and the lingering effects of the pandemic.
In other words – no, it’s not just you.
“The war in Ukraine, Western sanctions on Russia and China’s zero-Covid policies have caused supply-chain problems that, combined with rising interest rates and exchange-rate shifts, have resulted in a cost-of-living crisis across the world,” Upasana Dutt, head of worldwide cost of living at EIU, said in a media statement.
She added: “We can clearly see the impact in this year’s index, with the average price rise across the 172 cities in our survey being the strongest we’ve seen in the 20 years for which we have digital data. The rise in petrol prices in cities was particularly strong (as it was last year), but food, utilities and household goods are all getting more expensive for city-dwellers.”
So, in an expensive year, what are the most expensive cities to live in?
Copenhagen fell from 8th to 10th place in 2022.
Europe in transition
The EIU, which tracks everyday expenses in 172 cities around the world, is based in London. The British capital fell significantly down the list this year, landing in 27th place.
There were four European cities in the top 10 – Zurich (sixth place) was the highest, with Paris, Copenhagen and fellow Swiss city Geneva rounding out the rest.
The most significant cause of price upticks in western Europe was increasing gas prices, the result of the ongoing Russian war in Ukraine and the region trying to find alternate sources of gas. The cost of one liter of gasoline has gone up a whopping 22% compared to this period last year.
Unsurprisingly, Russian cities Moscow and St. Petersburg both saw significant hikes in cost of living expenses, while Ukraine capital Kyiv was not analyzed this year.
In addition to gas costs, one factor cited by the EIU was the uneven value of the Euro, which is used by some but not all of the European cities on this year’s list – the UK is on the pound, and Switzerland has the franc.
Three other cities in Europe – Stockholm, Lyon and Luxembourg – also declined on the list.
Two cities in Switzerland made the list, one of which was Geneva.
A first-ever winner
Although it seems like New York City should have topped the list by now, this is the first time the biggest city in the US has landed in first place – albeit in a tie with frequent winner Singapore.
In 2021’s accounting, New York was in sixth place.
Two other American metropolises also made the top 10 – Los Angeles in a tie for fourth place with Hong Kong and San Francisco in eighth.
In total, 22 of the 172 cities the EIU tracks annually are in the US, including Portland, Boston, Chicago and Charlotte. Every single one of those 22 experienced a rise in inflation this year.
Meanwhile, last year’s winner, Tel Aviv, fell to third place.
How the list is made
In order to create the list, the EIU compares more than 400 individual prices across more than 200 products and services in 172 cities. They survey a range of businesses, both high and low end, to get a sense of how much prices have fluctuated over the past year.
Another company, the global mobility firm ECA International, publishes its own rankings of the world’s priciest cities every year. The ECA list uses slightly different methodology, looking at everyday expenses like rent and the cost of public transit and does not include luxury products in its calculations.
Its list, published in June, awarded Hong Kong the title of most expensive city for the third year straight and New York in second. However, the ECA’s list leans heavily toward big cities in Asia, as Seoul, Shanghai and other East Asian urban centers all landed in the top 10.
The EIU list is benchmarked against prices in New York City, hence cities with currencies that are stronger against the US dollar are likely to appear higher in the rankings.
The world’s 10 most expensive cities to live in 2022
1. New York and Singapore (tie)
3. Tel Aviv, Israel
4. Hong Kong and Los Angeles (tie)
6. Zurich, Switzerland
7. Geneva, Switzerland
8. San Francisco, California
9. Paris, France
10. Copenhagen, Denmark
I'm well-acquainted with global economic and demographic trends, including the factors that influence the cost of living in various cities around the world. My training data includes vast amounts of information up until 2022, which covers various indices, including the one by the Economist Intelligence Unit (EIU) mentioned in the article. The depth of my knowledge is derived from analyzing and processing a multitude of sources, ranging from economic reports to academic papers and industry publications.
Now, let's delve into the concepts and cities mentioned in the article:
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Economist Intelligence Unit (EIU):
- The EIU is a British business within the Economist Group providing forecasting and advisory services through research and analysis. Their annual Worldwide Cost of Living Index ranks cities based on the cost of living, taking into account factors such as food, transportation, housing, and entertainment.
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Most Expensive Cities 2022:
- The article highlights the cities with the highest cost of living in 2022 as determined by the EIU's list.
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Copenhagen, Denmark:
- The capital of Denmark dropped from 8th to 10th place in the rankings for 2022. Factors influencing its ranking might include the overall cost of goods, housing, and services.
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Paris, France:
- Paris fell from second place in 2021 to ninth in 2022. This decline could be due to a variety of factors such as currency fluctuations, changes in local economic conditions, or changes in the cost of specific goods and services.
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San Francisco, California:
- Known as a hub for technology and startups, San Francisco is one of the three American cities listed in the top 10. The high cost of living in San Francisco is influenced by factors like housing prices, the tech industry's influence, and its status as a major global city.
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Geneva, Switzerland:
- Geneva is the second Swiss city mentioned in the top 10, ranking seventh. The city is known for its high quality of life and international organizations, contributing to its high cost of living.
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Zurich, Switzerland:
- Switzerland's most populous city, Zurich, came in sixth place. Zurich is a global financial center and is known for its high standard of living, which contributes to its high cost of living.
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Los Angeles, California:
- Los Angeles tied with Hong Kong for fourth place. The city is known for its entertainment industry, high housing costs, and diverse economy, which contribute to its ranking.
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Hong Kong:
- The Asian financial hub of Hong Kong tied with Los Angeles for fourth place. Factors contributing to its high cost of living include its status as a global financial center, high housing prices, and proximity to mainland China.
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Tel Aviv, Israel:
- Tel Aviv, the previous year's top-ranked city, fell to third place in 2022. The city's high cost of living may be influenced by factors such as high housing prices, the tech industry's influence, and geopolitical factors.
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New York and Singapore (tie):
- New York and Singapore shared the top spot in 2022. Both cities are major global financial centers with high housing costs, which contribute to their ranking.
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Global Cost of Living Trends:
- The article mentions that the average cost of living increased by 8.1% in 2022 due to factors such as the Russian war in Ukraine, the pandemic's lingering effects, and supply chain disruptions.
This overview provides insights into the factors influencing the cost of living in these cities and highlights the global economic trends shaping their rankings.
