The impact of the pandemic on the dollar is the main factor behind the variation in the cost of living in many countries, according to a survey published by The Economist.
Zurich and Paris have joined Hong Kong as the world’s most expensive cost of living cities, while Singapore and Osaka have given way to the top three, according to a survey released by the weekly on Wednesday The Economist.
The biggest move was recorded by 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.
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 study’s leaders.
“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 fell in particular because of a 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 continues.
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.
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.