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For the third consecutive year, Singapore is the world’s priciest city, according to the report by Economist Intelligence Unit (EIU).
The city-state beat Zurich, Hong Kong, Geneva and Paris in the EIU’s latest Worldwide Cost of Living report that ranks the cost of a basket of goods across 133 cities by comparing them to the cost of living in New York.
The republic retained its top ranking despite costs coming down by 10 percent compared to the 2015 survey.
Despite topping the ranking, EIU said Singapore still offers “relative value in some categories, especially compared with its regional peers.”
For example, Singapore offers the same value for general basic groceries as New York, while these items cost more in Seoul, Tokyo and Hong Kong.
However, Singapore remains consistently expensive in buying and running a car. Transport costs in here are 2.7 times higher than in New York. Furthermore, Singapore, alongside Seoul, is also a very expensive city to buy clothes and pay for utility costs.
Source: The Economist Intelligence Unit
Meanwhile, the report said a considerable movement in rankings was seen this time around as cities become highly volatile because of economic factors. These include geopolitical uncertainties, the rising US dollar, local currency devaluations, as well as the falling oil and commodity prices.
“The stronger US dollar and weaker euro have pushed euro zone cities further down the ranking, especially as weak consumer sentiment and depressed commodity prices have undermined inflation in terms of both supply and demand,” the EIU said.
Looking ahead, the researchers say the cost of living is “always changing, and there are already indications of further changes that are set to take place during the coming year.”
“Commodity prices, which are also falling back, could act as further deflators in some markets,” the report said.
Meanwhile, the EIU report revealed that the cheapest cities to live in were Zambian capital Lusaka, followed by Bangalore and Mumbai in India.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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