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Economist Intelligence Unit (EIU) has released its annual report on the cost of living in cities around the world.

In the Worldwide Cost of Living (WCOL) 2022 Index, Singapore was named the most expensive city to live in, tied with New York.

This is the eighth time Singapore has topped the list in the last ten years.

New York is at the top of the list for the first time.

Together, the two top cities bumped Tel Aviv — named the top city in 2021 — down to third place.

EIU explained that Singapore and New York's place at the top of the list could be partly explained by "stronger currency and a higher inflation rate".

"A stronger currency will tend to see a city rise in the rankings, as prices are higher when expressed in international common currency," said EIU, adding that it converts local currency prices to U.S. dollars to calculate each city's index.

A press release by EIU on Dec. 1 said Singapore has "the world’s highest transport prices" and attributed this to "strict government controls on car numbers".

The press release also noted Singapore's "success as a premier location for business investment", and noted that it is also among the most expensive cities for clothing, alcohol and tobacco.

Global cost-of-living crisis

The cost of living in the world's major cities have soared in 2022.

EIU said its latest survey found an average 8.1 per cent increase in prices in local-currency terms.

"This is the fastest rate for at least 20 years, reflecting a global cost-of-living crisis sparked by the war in Ukraine and continuing Covid-19 restrictions in China," said EIU.

This is a result of supply chains being disrupted, particularly for energy and food by the war in Ukraine and continued Covid-19 restrictions in China.

On average, the 58 Asian cities in the WCOL saw moderate price increases of 4.5 per cent in local currency terms.

Karachi, Pakistan was an outlier, as prices there increased by 22 per cent.

Singapore a "frequent leader" on EIU index

Singapore first emerged as the most expensive city in 2014, and continued to hold the title for five more years.

In 2019, Singapore shared the top spot with two other cities — Hong Kong and Paris — and fell to fourth place in 2020, before climbing to second in 2021.

However, the EIU survey may resonate more with the experience of expatriates in a country.

This is due to the way prices of goods are collated.

"The survey has been designed to enable human resources and finance managers to calculate cost-of-living allowances and build compensation packages for expatriates and business travellers," said EIU, which added:

"It can also be used by consumer goods firms and other companies to map pricing trends, determine optimum prices for their products across cities and understand the relative expense of a city to formulate policy guidelines."

Read more about the index here.

Top Photo via Unsplash