Each 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 costliest cities. The 2 Asian cities beforehand joined Hong Kong on the prime of the rankings.
That is based mostly on The Economist Intelligence Unit’s latest Worldwide Cost of Living index which reveals 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 precipitated the weakening of the U.S. dollar whereas western European and north Asian currencies have strengthened in opposition to it, which in flip has shifted costs for items and providers,” mentioned Upasana Dutt, head of Worldwide Value of Dwelling at The EIU. New York Metropolis is used as the bottom metropolis within the index.
“Asian cities have historically dominated the rankings up to now 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 the town state’s total inhabitants contracting for the primary time since 2003, demand has declined and deflation has set in. Osaka has seen comparable developments, with shopper costs stagnating and the Japanese authorities subsidizing prices similar to public transport.” Osaka shares fifth place with Tel Aviv.
Costs for many items and providers had been “pretty flat” over the previous 12 months, however sure classes had been affected due to the Covid-19 disaster, the EIU mentioned.
The price of important merchandise similar to meals and water stayed “resilient,” however low demand precipitated clothes costs to fall sharply.
“Provide-chain issues have additionally had differing impacts on totally different items, pushing up the worth of high-demand merchandise similar to computer systems in some cities,” the report mentioned.
Dutt mentioned such developments may 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.”