Every year, The Economist publishes a list of the most expensive cities in the world, and the 2023 rankings are in. The publication looks at the cost of living index, which compares prices of hundreds of products and services in 172 cities around the globe. The Economist’s data found that inflation remains extremely high across the board, with the cost of goods and services rising on average by 7.4%. With a few notable changes from last year, the list spans Asia, Europe, the Middle East, and the US.
Below, see the full list and the factors that contributed to each area’s high cost of living.
- Zurich: Switzerland is among the 4 countries whose currency is the Swiss franc, which has given it this high ranking.
- Singapore: Singapore has topped The Economist’s list. Transportation and clothing are two categories where costs are significantly above average.
- Geneva: This is the second Swiss city to appear on the top 10 list. Residents of both it and Zurich share similarly high taxes that help to drive up the cost of living.
- New York City: The ongoing economic uncertainty as the world navigates the new post-COVID reality and governments battle the threat of inflation has made the dollar an important refuge and has, in the process, driven up costs in the United States.
- Hong Kong: Spread over 260 mountainous islands, buildable land is scarce in the Chinese territory. With limited supply, prices are significantly up.
- Los Angeles: As with New York, the strong dollar is a large factor behind the Los Angeles’ high ranking this year.
- Paris, France: Although prices have indeed risen in France’s capital, the relative weakness of the euro has pushed the city down in the rankings.
- Tel Aviv: It’s worth noting that The Economist’s survey was performed before the conflict between Israel and Hamas began, and the publication acknowledges this “has affected the exchange rates in Israel and may have made it harder to procure some goods in Tel Aviv, thereby affecting prices.”
- Copenhagen: High taxes contribute to the Danish capital’s place on The Economist’s 2023 list. There is a 25% tax imposed on all goods and services in Copenhagen, with additional taxes on some products like tobacco, alcohol, and chocolate.
- San Fransisco: San Francisco fell from the number eight spot last year and, given its difficult recovery from the COVID-19 pandemic, may become more affordable.
