World's Most Expensive City: Singapore topped the cities in the world to become the most expensive city to live in 2014 according to the Economist Intelligence Unit (EIU).
BBC News reported that 'the city's strong currency combined with the high cost of running a car and soaring utility bills contributed to Singapore topping the list. It is also the most expensive place in the world to buy clothes.'
EIU report says, "Car costs have very high related certificate of entitlement fees attached to them, which makes Singapore significantly more expensive than any other location when it comes to running a car. As a result, transport costs in Singapore are almost three times higher than in New York. In addition, as a city-state with very few natural resources to speak of, Singapore is reliant on other countries for energy and water supplies, making it the third most expensive destination for utility costs."
Singapore alternates Tokyo, which topped the 2013 list. Tokyo plunged to sixth place this year.
At the other end of the 131-city survey, EIU lists Mumbai as the world's least expensive city to live in while Indian Capital New Delhi ranked third cheapest.
EIU said, "Although India has been tipped for future growth, much of this is driven by its large population and the untapped potential within the economy. Income inequality means that low wages proliferate, driving down household spending and creating many tiers of pricing that keep per capita spending low. This, combined with a cheap and plentiful supply of goods into cities, as well as government subsidies on some products, has kept prices down, especially by Western standards."
Economist Intelligence Unit releases the Worldwide Cost of Living Survey twice a year. It matches 'more than 400 individual prices across 160 products and services in 131 cities, including food, drink, clothing, household supplies and personal care items, home rents, transport, utility bills, private schools, domestic help and recreational costs,' quoted from CNN.
"The cost-of-living index uses an identical set of weights that is internationally based and not geared toward the spending pattern of any specific nationality. Items are individually weighted across a range of categories and a comparative index is produced using the relative difference by weighted item." EIU said.
Other cities making up the top five most expensive cities to live in are Paris, Oslo, Zurich, Sydney, Caracas, Geneva, Melbourne, Tokyo and Copenhagen.
