Top 10 Most Expensive Cities in the World 2023

In 2023, global prices surged by 7.4%, marking a persistent ascent despite the alleviation of supply-chain disruptions and the surge in interest rates. The pace, though slightly slower than the 8.1% upswing documented last year, remains significantly above the trend observed in 2017-21, affirming a robust inflationary trend.

The alleviation of supply-side shocks, stemming from China's relaxation of COVID-19 restrictions in late 2022, has tempered the surge in prices observed in 2021-22. Simultaneously, the spike in energy prices following Russia's invasion of Ukraine in February 2022 has also abated. Noteworthy is the unexpected resilience of consumer demand in advanced economies such as the US, Australia, and the UK, where consumer spending has weathered the aggressive monetary tightening initiated in 2022. The estimates are that the global consumer price inflation (CPI) in 2023 will settle at 7.4%, aligning with the rate indicated by our average WCOL inflation. This represents a decline from the 9.2% CPI reported for 2022.

Singapore is the world’s most expensive city in 2023 for the ninth time in 11 years.

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Top 10 Most Expensive Cities In The World 2023

Zurich, Switzerland, has reclaimed the top spot after a three-year hiatus. New York, USA, which shared the first position last year, has slipped to the third position, sharing the spot with Geneva, Switzerland. Notably, Damascus, Syria, retains its status as the world's most economical city. Here is the list of the 10 most expensive cities in the world:

*The Hong Kong Special Administrative Region (SAR) of the People’s Republic of China.

The list is based on the Economist Intelligence Unit’s (EIU) Worldwide Cost of Living 2023 report.

Most Expensive Cities In The World 2023

Singapore and Zurich have emerged as the most expensive cities in this year's survey. Zurich ascended from the sixth position to jointly claim the top spot with Singapore, displacing New York, which shared the first place with Singapore last year, to the third position. The WCOL index, reliant on converting local currency prices into US dollars, reflects Zurich's rise, influenced by the strength of the Swiss franc and elevated prices for groceries, household goods, and recreation. Singapore, on the other hand, stands out for its particularly high costs of transport and clothing. Tied for the third position is another Swiss city, Geneva, followed by Hong Kong in fifth place and Los Angeles (US) in the sixth position.

The top ten cities this year include two Asian cities (Singapore and Hong Kong), four European cities (Zurich, Geneva, Paris, and Copenhagen), three US cities (New York, Los Angeles, and San Francisco), and Tel Aviv in Israel. However, it's essential to note that our survey was conducted before the commencement of the Israel-Hamas war, impacting exchange rates and potentially affecting the availability and prices of goods in Tel Aviv.

Some shifts in this year's survey can be attributed to a slight weakening of the US dollar against certain currencies. Rankings are also influenced by factors such as consumer demand, competition, and the accessibility of goods, whether imported or locally produced.

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Which Is the Cheapest In the World?

Despite a staggering 321% year-on-year increase in its WCOL price basket in local currency terms, Damascus retains its status as the cheapest city. This surge is attributed to the lifting of government subsidies and the devaluation of the currency, leading to heightened import costs. Occupying the lower rungs of the rankings are Tehran (Iran) and Tripoli (Libya). Tehran grapples with a high inflation rate, approaching 49%, while Tripoli has experienced a modest 5% increase in prices over the past year. Notably, all three cities offer particularly affordable options for groceries, household goods, and personal care.

The less-than-enviable distinction of being the highest-inflation city in our survey once again goes to Caracas, securing the 144th place in the rankings. However, the WCOL inflation in Caracas has decelerated to a comparatively moderate 450% over the past year, a significant improvement from the staggering rates exceeding 25,000% recorded in 2019.

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