Day by day Life In Zurich, Switzerland on October 28, 2020.
Piotr Piwowarski | NurPhoto | Getty Photos
SINGAPORE — Zurich and Paris have displaced Singapore and Osaka in a latest report on the world’s most costly cities. The 2 Asian cities beforehand joined Hong Kong on the high of the rankings.
That is based mostly on The Economist Intelligence Unit’s latest Worldwide Cost of Living index which exhibits how the coronavirus pandemic has affected the costs of products and providers in additional than 130 cities as of September 2020.
“The Covid-19 pandemic has brought about the weakening of the U.S. dollar whereas western European and north Asian currencies have strengthened towards it, which in flip has shifted costs for items and providers,” mentioned Upasana Dutt, head of Worldwide Price of Residing at The EIU. New York Metropolis is used as the bottom metropolis within the index.
“Asian cities have historically dominated the rankings previously years however the pandemic has reshuffled the rankings of this version.”
Singapore, which is now in fourth place, noticed costs fall due to an exodus of overseas employees, the report mentioned.
“With town state’s general inhabitants contracting for the primary time since 2003, demand has declined and deflation has set in. Osaka has seen related developments, with client costs stagnating and the Japanese authorities subsidizing prices akin to public transport.” Osaka shares fifth place with Tel Aviv.
Costs for many items and providers had been “pretty flat” over the previous yr, however sure classes had been affected due to the Covid-19 disaster, the EIU mentioned.
The price of important merchandise akin to meals and water stayed “resilient,” however low demand brought about clothes costs to fall sharply.
“Provide-chain issues have additionally had differing impacts on completely different items, pushing up the value of high-demand merchandise akin to computer systems in some cities,” the report mentioned.
Dutt mentioned such developments might proceed in 2021 as spending stays restricted, placing stress on costs.
“Many price-conscious customers will prioritize spending on staples, residence leisure and quicker web entry,” she mentioned. “Huge-ticket gadgets, in addition to clothes and out-of-home recreation, will proceed to wrestle.”