Tel Aviv is now the most expensive city in the world to live in as soaring inflation has pushed up the cost of living around the world, according to a survey released Wednesday.

The Israeli city climbed five ranks to rank for the first time at the top of the authoritative ranking compiled by the Economist Intelligence Unit (EIU).

The Global Cost of Living Index is compiled by comparing the prices in US dollars of goods and services in 173 cities. Tel Aviv climbed in the rankings in part due to the strength of the national currency, the shekel, against the dollar, as well as increases in the prices of transportation and groceries.

Paris and Singapore come second, followed by Zurich and Hong Kong. New York was sixth and Geneva seventh.

To complete the top 10, Copenhagen was eighth, Los Angeles ninth and Osaka, Japan, 10th.

Last year, the survey ranked Paris, Zurich and Hong Kong as the number one most expensive cities in the world to live in.

This year’s data was collected in August and September as freight and commodity prices rose and shows that on average prices rose 3.5% in local currency, the fastest rate of inflation registered in the last five years. Social restrictions due to the coronavirus pandemic “have disrupted the supply of goods, leading to shortages and higher prices,” said Upasana Dutt, head of global cost of living at the EIU.

“We can clearly see the impact on the index this year, with the rise in oil prices particularly strong,” she said, while central banks should increase their interest rates cautiously, reducing so inflation. The average inflation figure does not include four cities with unusually high rates: Caracas, Damascus, Buenos Aires and Tehran.

The Iranian capital fell from 79th to 29th place in the ranking as US sanctions pushed up prices and caused shortages.
Damascus has been ranked as the cheapest city in the world to live in.

This article was published via AFP.