The Economist published this Thursday, November 30, its ranking of the most expensive cities in the world. And this year, Zurich and Singapore top the list, ahead of New York which confirms the general fall of cities in North America. Dethroned from first place, Big Apple leaves the podium and settles in 4th position, tied with Geneva.
$106,000 to own a car in Singapore
“Singapore is no stranger to first place,” notes the British weekly, which recalls that over eleven years, the city-state has been designated nine times as the most expensive city in the world. For illustration, the certificate required to have the right to own a vehicle is around $106,000.
On the other hand, Switzerland’s largest city jumped five places. “Its rise to the top of the index is mainly explained by the fact that the Swiss franc has appreciated by more than 10% against the dollar over the last year,” decrypts The Economist.
European cities climb the rankings
In France, Paris gained two places and came seventh. Just ahead of Copenhagen which is 8th, tied with Tel Aviv, voted the most expensive city in the world in 2021. The four European metropolises thus maintain their rank in the top 10 cities with the highest prices. But while none appeared in the top 5 in 2022, there are two this year to have found their place.
Results which are largely explained by the inflation which is hitting the Old Continent hard. But also by the appreciation of the euro by 7% compared to the dollar. Consequence of the policy of increasing interest rates of the European Central Bank (ECB) in 2023. Half of the first 20 places in the ranking are thus occupied by Western European cities, like Copenhagen, Dublin or even Vienna.
Conversely, the weakening of the ruble – the consequences of sanctions imposed on Russia following its invasion of Ukraine in February 2024 – caused Moscow and St. Petersburg to fall considerably. The two cities are 142nd and 147th in the ranking. Far ahead of Damascus which remains the cheapest city in the world. Closely followed by the Iranian capital, Tehran.
An increase of 7.4% in one year
After combing through 173 cities around the world, The Economist estimates the average price increase at 7.4% over one year. This is a slight slowdown compared to the 8.1% recorded in 2022. Unprecedented. However, despite a slowdown, inflation “remains well above the average of 2.9% over the previous five years”, underlines the British daily.
“The cost of living crisis is far from over and price levels remain well above historical trends,” insists Upasana Dutt, head of the study, which is based on the price of 200 products and services. . Which, however, expects “a continued deceleration of inflation in 2024”, due in particular to the effect of interest rate increases decided by central banks to combat price increases.