New York was the world’s most expensive metropolis in 2022, as rising energy prices doubled the rate of inflation in major global cities, according to the Economist Intelligence Unit’s annual survey.
Singapore ranks second, last year’s leader Tel Aviv slipped to third, while Sydney entered the Top 10 and Moscow and St Petersburg in Russia fell in the rankings as sanctions and high oil prices drove prices higher.
A stronger local currency was also a factor in the cities ranking on the Economist Intelligence Unit’s list. The US currency has strengthened significantly against almost all currencies after the US Federal Reserve raised interest rates and signaled further hikes in the future.
Japan’s Tokyo and Osaka fell to 37th and 43rd, respectively, from 13th and 10th in 2021. Stockholm and Luxembourg were ranked 99th and 104th, while Damascus in Syria and Tripoli in Libya retained their places as the cheapest cities surveyed.
The UK cities surveyed dropped, with London coming in at 28th place from 17th in 2021. Singapore coming out on top came as little surprise as the city-state was the most expensive in 2021.
The global rise in inflation has caused economic chaos in many countries. Subsequent sanctions against Russia fueled further increases in oil, gas and other energy prices. Gas and electricity prices were 29% higher in Western European cities. The Economist Intelligence Unit predicts that rising costs will ease in 2023 and supply chain bottlenecks begin to ease.
