This is now the world’s most expensive city to live in: EIU
Tel Aviv in Israel is currently the most costly city to live, according to an annual report from the Economist Intelligence Unit.
Israeli cities climbed from fifth position to top the EIU’s global cost of living index, December 2021. last year.
According to the EIU, Tel Aviv rose in the rankings because of the rise in the Israeli shekel (or currency) against the dollar due to Israel’s Covid-19 vaccination rollout.
Israel has one of the most efficient Covid-19 vaccine programs anywhere in the world. Figures from Our World in DataAccording to Reuters, 62% Israelis were fully immunized as of Monday. According to Reuters in November, the Israeli shekel had risen 4% year-over-year against the U.S. Dollar, however, these gains have since been trimmed.
In the latest EIU research that examined the price of more than 200 items and services across 173 cities, approximately a tenth (or 10%) of Tel Aviv’s goods saw their prices rise.
EIU also stated that the inflation rate for the prices it monitors had risen 3.5% annually in local currency terms between September 2021 and 2020, as opposed to 1.9% in 2020. This was the highest rate of inflation it has seen in the index’s five-year history.
According to the EIU, these increases in commodities’ prices were caused by supply chain problems, fluctuating currency rates, and changing consumer demand. The biggest increase was in the cost of transport. According to EIU research, gasoline prices per liter rose 21% annually by 2021.
Upasana DUTT, EIU’s head for worldwide cost of living, stated that prices are expected to increase in many areas as wages rise.
“However we also expect central banks to increase interest rates prudently to stem inflation,” she stated, noting that price rises should start to moderate from current levels.
Paris, the French capital fell to 2nd place. Singapore was next. The biggest drop in rankings was in Rome, Italy. This is due to sharply falling prices for groceries and clothes.