European cities cheaper, Tokyo still dearest

European cities cheaper, Tokyo still dearest
REUTERS

JAN 18: The comparative cost of living in Europe has plummeted in the past year, while Tokyo and Osaka remain the world's most expensive cities for expatriates, a new report said on Thursday.

Helped by the weak euro, Paris slipped to the 26th most expensive city in the world, from eighth place in the previous year, while London remained the most expensive place to live in EU, according to the the Economist Intelligence Unit (EIU) .

As the euro's value plunged, other EU cities fell by as much as 20 to 30 places in the EIU's cost of living survey, which compares the prices expatriates pay for goods around the world.

Due to restrictions on imports to Yugoslavia, Belgrade rocketed to the third most expensive city from 86th -- making it the most expensive place to be posted in Europe.

With sky-high property prices and expensive travel costs, London retains its position in the top 10 at eight, down one from the previous year.

As European cities get cheaper, the strong dollar has edged American cities up the chart. In 2000, Seattle outstripped Dubai, while San Francisco overtook Vienna. The most expensive US City, New York, crept up the rankings to seventh place from 14th in 1999, while the nation's cheapest, Atlanta, gained eight places to rank 63rd.

As in previous years, Asian cities dominate both the top and bottom of the scale. Of the top 10 cities, five are in Asia, while four of the cheapest ten are also in the region.

The cheapest Asian city is New Delhi, where the cost of living is a quarter of that in Tokyo, while the cheapest city overall is Tehran -- which has a cost of living index of 24 against New York's benchmark 100.

The bi-annual EIU survey ranks 133 cities against the most expensive city in the United States by comparing the costs of a basket of around 100 goods.

A loaf of bread in Tehran costs the equivalent of 18 cents, while a similar loaf would cost $5.21 in Tokyo. Petrol in the Iranian capital costs two cents a litre, but the same amount in London would set a driver back $1.14, the EIU said. The results provide companies with a guide from which to calculate allowances for expatriate employees.