The Economist Intelligence Unit’s 2021 Worldwide Cost of Living report listed Tel Aviv is the most expensive city in the world, surpassing even Paris, Hong Kong, and London.
The EIU studied the cost of living in 173 locations throughout the world this year, comparing the prices of over 200 products and services across ten distinct categories to determine the world’s cheapest and most costly towns.
The Israeli city of Tel Aviv, according to the Economist Intelligence Unit (EIU), is now the most costly on the earth when it comes to paying for everyday expenses including rent, food and drink, recreation, cigarettes, transportation, clothing, utilities, and gasoline.
When compared to other cities, Tel Aviv is significantly more expensive to acquire alcohol (second), transportation (also second), personal care items (fifth), and recreation (sixth).
Tel Aviv has risen to the top of the rankings for the first time, from fifth position last year, and has pushed Paris into a tie for second place with Singapore. Meanwhile, London is ranked 17th.
Tel Aviv topped the rankings this year, according to the 2021 Worldwide Cost of Living report, owing to the fact that the Israeli currency, the shekel, has risen, making local prices more costly when converted into US-dollar terms. Property values have also climbed, particularly in residential areas (which are not included in the index computation).
According to The Guardian, Israel has also become the first country in the world to launch a fourth Covid-19 vaccine campaign to combat rapidly escalating infection rates caused by the Omicron form.
According to the EIU, prices for goods and services have increased by 3.5 percent on average year over year, the greatest rate in the last five years.
The Covid-19 epidemic, which has pushed up costs in a lot of cities, has had a significant influence on cost of living. This rise is due to a variety of variables, including supply-chain interruptions and shifting consumer demand as a result of various limitations and lockdowns.
Rome has dropped from 32nd to 48th place in the EIU rankings, with a particularly steep loss in the shopping basket and clothing categories.
Tehran climbed the most in the EIU rankings, from 79th to 29th, as it did in 2020. The reinstatement of US sanctions against Iran has resulted in continued shortages of supplies and higher import prices.
After the government responded to the covid-19 outbreak by pumping more money into the economy, most US cities have declined in the rankings compared to previous year. The US dollar’s value was held down against European and Asian currencies as a result of this. Surprisingly, the index value for the transportation category in US cities is lower than the global average.
Damascus (Syria) and Tripoli (Libya) are two of the world’s cheapest cities. Both are confronted with a slew of economic and political issues. Seven cities in the United States and 11 cities in China are newcomers to the list.