If you live in Paris, Zurich or Hong Kong, you should know that you live in the three cities with the highest cost of living in the world. This is what reveals a survey published by the magazine The Economist, Wednesday November 18. While Hong Kong has remained in the top 3, Osaka and Singapore have given way to the French capital and the most populous city in Switzerland. And these movements are mainly due to currency fluctuations.
The impact of the pandemic on the dollar is the main factor driving the cost of living in many countries, the report points out. “The Covid-19 pandemic caused the US dollar to lose value while the currencies of Western Europe or North Asia strengthened, which had consequences for the price of goods and services “, notes Upasana Dutt, one of the leaders of the study.
The rise of the euro and the Swiss franc
“Paris and Zurich have joined Hong Kong at the top of the ranking because of the rise of the euro and the Swiss franc against the dollar,” notes the report, which specifies that prices in Singapore have notably “Metropolises suck wealth and diverge from the rest of the country”declined due to lower demand following an exodus of foreign workers. In Osaka, “consumer prices have stagnated and the Japanese government has subsidized costs such as public transport,” the report continued. In the United States, New York lost one place to find itself tied for seventh with Geneva, and Los Angeles fell to ninth place, tied with Copenhagen.
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The biggest move in the rankings came from Tehran, which jumped 27 ranks due to the impact of US sanctions, according to the 2020 Global Cost of Living report released by The Economist. Everywhere, the cost of living has fallen in the wake of clothing prices, workers assigned to home because of containment measures in the face of the pandemic have postponed the purchase of new outfits. Conversely, the rise of teleworking has caused a surge in purchases of electronic devices, a product category that saw its prices increase the most according to the study.