EIU’s Worldwide Cost of Living Index 2021: Tel Aviv Ranks World’s Costliest City; Paris, Singapore Ranks 2nd

According to the Economist Intelligence Unit’s (EIU) Worldwide Cost of Living Index 2021, Tel Aviv, Israel has become the most expensive city in the world to live in 2021, pushing Paris, France and Singapore jointly to occupy the second spot with Zurich and Hong Kong at the fourth and fifth spots respectively.

• Tel Aviv climbed from 5th place to the top in 2021 due to the rising value of the Israeli currency shekel against US Dollar along with increase in the price of grocery and transport.
• Syria’s Damascus was ranked as the world’s cheapest city.

Significance:

i.Globally, supply chain issues, exchange rate shifts, and changing consumer demand has

increased price on commodities and other goods.

ii.The Transport acquired the fastest gains in the price index followed by the rising energy prices.

iii.On average, the prices for the goods and services have risen by 3.5% year on year (in local-currency terms), compared with an increase of just 1.9% in 2020.

Top 10 most expensive cities:

i.Rome, Italy saw the biggest drop in the ranking from 32nd to 48th place, Tehran, Iran rank increased from 79th to 29th place.

ii.Hong Kong had the most expensive petrol prices, at $2.50 per liter. The prices of branded cigarettes went up 6.7% on average.

Worldwide Cost of Living 2021 Index

i.The Worldwide Cost of Living Index examines the cost of living in 173 cities and measures impactful global events.

ii.The cost of living study is conducted twice a year.

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About Economic Intelligence Unit (EIU)

Established – 1946
Headquarters – London, United Kingdom
Global Chief Economist, Managing Director(Asia) – Simon Baptist