As Singapore becomes the world’s second-most expensive city, what happened to Hong Kong?
- The Economist Intelligence Unit (EIU) Worldwide Cost of Living 2021 report put Tel Aviv in top spot, with Singapore and Paris in joint second place
- Hong Kong was ranked fifth this year as prices of clothing and personal care, including haircuts, dipped
Hong Kong is no longer the most expensive city in the world to live in, according to rankings released by The Economist Intelligence Unit (EIU) on Wednesday, losing the top spot to Tel Aviv, as cities clocked the highest inflation rate in five years.
The Israeli city climbed four places to top the rankings for the first time on the back of a stronger currency and hikes in grocery and car prices. Hong Kong was ranked fifth this year as prices of clothing and personal care, including haircuts, dipped.
Meanwhile, Singapore rose by two spots to clinch joint second place with Paris, while Zurich came in fourth. New York, Geneva, Copenhagen, Los Angeles and Osaka took the remaining top 10 spots.
The Worldwide Cost of Living 2021 report compared 173 cities using the prices of some 200 products including food, clothing, household supplies, home rents, transport and recreation.
The report noted that data was collected between August and September this year, when freight rates and oil prices were rocketing, resulting in higher prices for goods.
Upasana Dutt, head of Worldwide Cost of Living at EIU, said that although most economies around the world are now recovering from the coronavirus pandemic with expansive vaccination programmes, many major cities are still seeing a resurgence in infections, prompting authorities to reimpose curbs.