Another look at 2024's top 10 most expensive cities

The Economist releases a ranking of the world's most expensive cities each year. Their most recent Worldwide Cost of Living survey found that on average, prices rose by 7.4% year-over-year in local currency terms for over 200 commonly used goods and services. This is a slight decline from the 2022, which saw an 8.1% increase. Some of the items that factor into cost of living calculations include housing, groceries, household supplies, personal care, alcohol, tobacco, clothing, domestic help, recreation, transportation, and utilities. Many cities also have unique elements that drive prices up. According to Interesting Facts - “With most of these [top 10] cities, you’re paying a premium for cultural prestige, but it’s not the only factor at work. These cities are centers of high-paying industries or major players on the international stage, and sometimes even have unique problems with international trade that affect everyday expenses. ” 

Before sharing the Top 10, here are a few key findings from the survey:

• Singapore maintained its pole position as the world’s most expensive city for the ninth time in the last eleven years, tying with Zurich (Switzerland) and overtaking New York (US), which fell to third place this year.
• Although three US cities (New York, Los Angeles, and San Francisco) are among the top ten, North American cities have, on average, slipped down our cost-of-living ranking. 
• Western Europe accounts for four of the top ten most expensive cities in our ranking, owing to sticky inflation in groceries and clothing along with appreciation of the region’s currencies. 
• The Russian cities of Moscow and St Petersburg experienced the biggest drop in the ranking as sanctions weakened the ruble.
• The Mexican cities of Santiago de Querétaro and Aguascalientes were the biggest movers up the ranking, with the peso proving to be one of the strongest emerging market currencies in 2023, on the back of interest-rate rises and strong inward investment.
• Of the ten categories in our price index, utility prices rose the most slowly over the past year, reflecting the waning impact of Russia’s invasion of Ukraine in 2022. Grocery prices, however, continue to rise strongly. Food inflation has been sticky across the world as many manufacturers and retailers have passed on higher costs to consumers and the increasing frequency of extreme weather events continues to keep supply-side risks elevated. 

Now, here they, the TOP 10 MOST EXPENSIVE PLACES TO LIVE IN THE WORLD:

1. Singapore
2. Zurich
3. Geneva
4. New York City
5. Hong Kong
6. Los Angeles
7. Paris
8. Copenhagen
9. Tel Aviv
10. San Francisco

As cost concerns rose as a focus for most talent mobility programs, getting accurate and up-to-date cost estimates for mobility activity is essential for properly managing fiscal concerns and expectations.