The world’s ten most expensive cities are Singapore, Paris, Oslo, Zurich, Sydney, Caracas, Geneva, Melbourne, Tokyo and Copenhagen in EIU’s 2014 survey. And the least expensive cities are Mumbai, Karachi, New Delhi, Damascus, Kathmandu, Algiers, Bucharest, Panama City, Jeddah and Riyadh.
The survey is based on more than 400 prices of goods and services. However, the raw data are all translated into US dollars to compare. Therefore currency fluctuations have big influence on the results. Singapore relies on imported goods and natural resources, making the daily costs expensive. At the same time, the strength of Singapore dollar also contributes to its high ranking globally.
Oslo ranked fourth in the EIU’s list in 2013 and moves to third this year. It doesn’t necessarily mean that the prices in Oslo have been raised up. The cost of living in Oslo becomes more expensive comparing to other cities in the world if the Norwegian Kroner strengthens, even when local prices remain unchanged.