Economist Intelligence Unit’s (EIU) has announced the Worldwide Cost of Living Index 2021. According to the Index, Tel Aviv, Israel has become the most expensive city in the world to live in 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 the US Dollar along with the increase in the price of grocery and transport. Syria’s Damascus was ranked as the world’s cheapest city.
Key points of the Index:
- Globally, supply chain issues, exchange rate shifts, and changing consumer demand has increased price on commodities and other goods. Transport acquired the fastest gains in the price index followed by the rising energy prices.
- The prices of goods and services have risen 3.5% in 2021 which is doubled to 1.9% in 2020.
- Rome, Italy saw the biggest drop in the ranking from 32nd to 48th place, Tehran, Iran rank increased from 79th to 29th place.
- Hong Kong had the most expensive petrol prices, at $2.50 per litre. The prices of branded cigarettes went up 6.7% on average.
Worldwide Cost of Living 2021 Index
The Worldwide Cost of Living Index examines the cost of living in 173 cities and measures impactful global events. The cost of the living study is conducted twice a year.
Important takeaways for all competitive exams:
- Economist Intelligence Unit Established: 1946;
- Economist Intelligence Unit Headquarters: London, United Kingdom;
- Economist Intelligence Unit Global Chief Economist, Managing Director: Simon Baptist.