Tel Aviv, Israel, is now the world’s most expensive city to live in, according to a biannual report by the Economist Intelligence Unit.
- This is the first time the city topped the ranking, climbing up from fifth place last year, and is now ahead of Paris and Singapore, which tied for second. Rome, Italy saw the biggest fall in rankings.
- Per the report, this rise reflects the strength of Israeli currency, the shekel, against the U.S. dollar and an increase in prices for groceries and transportation.
- According to CNBC, Isreal has done well fighting against the pandemic with 62% of the population fully vaccinated as of Monday.
The EIU, which tracks the cost of living in 173 cities across the world, found that the prices of goods and services worldwide rose by 3.5%, compared to a 1.9% increase last year, making it the fastest-paced inflation over the past five years.
- Supply chain issues and changes in consumer demand were contributing factors to inflation.
- Transportation costs rose exponentially because of the rise in oil prices.
Prices will only go up, said Upasana Dutt, head of worldwide cost of living at the EIU, in a report by CNBC.
- “However, we are also expecting central banks to raise interest rates, cautiously, to stem inflation,” she said.
- Four cities, specifically, are suffering from high inflation — Caracas, Venezuela, Damascus, Syria, Buenos Aires, Argentina, and Tehran, Iran.
Here is a list of the most expensive cities in the world in 2021, according to the report:
1. Tel Aviv, Israel
2. Paris, France
4. Zurich, Switzerland
5. Hong Kong, China
6. New York
7. Geneva, Switzerland
8. Copenhagen, Denmark
9. Los Angeles
10. Osaka, Japan