MercoPress. South Atlantic News Agency

Moscow and Tokyo most expensive cities third year running

Moscow and Tokyo top the list of the world's most expensive locations for the third year running, according to the annual report from consultants Mercer which considers 143 cities all over the world. Asunción in Paraguay figures as the less expensive place to live.

Mercer makes the annual survey measuring the comparative costs of more than 200 items ranging from housing to entertainment, using New York as its base city on 100 points. Moscow scored 142.4, up from 134.4 last year, made more expensive as the Ruble appreciated against the dollar and accommodation costs rose. London had an index of 125 compared with 126.3 in 2007, with sterling relatively stable against the dollar. The survey found that one cup of coffee including service would cost on average £2.20 in London, compared with £5.19 in Moscow and £2.57 in Tokyo. Similarly, a copy of an international daily newspaper would set you back £3.05 in Moscow compared with just £1.50 in Britain. Tokyo was the most expensive city to rent a luxury two-bedroom unfurnished apartment, costing £2,613 a month, compared with £2,500 in London. However, that was more expensive than both Moscow's and New York's £2,293. Overall, London dropped one place in the rankings and Birmingham and Glasgow also lost ground, overtaken by European cities made relatively more expensive by a strengthening Euro and other European currencies. Oslo jumped six places to fourth in the rankings because of a stronger Norwegian Krone and record property prices. The weakening of the dollar against most leading currencies has made living in US cities relatively cheaper, with New York the only North American city to feature in this year's top 50, down seven places to 22nd. A weaker dollar, combined with higher costs of living due to economic growth, has also pushed Eastern European cities such as Riga, in Latvia, and Indian cities such as Delhi up the rankings as they become relatively more expensive compared with the US. Yvonne Traber, a principal and research manager at Mercer commented: "Current market conditions have led to the further weakening of the US dollar which, coupled with the strengthening of the Euro and many other currencies, has caused significant changes in this year's rankings. "Although the traditionally expensive cities of Western Europe and Asia still feature in the top 20, cities in Eastern Europe, Brazil and India are creeping up the list. Conversely, some locations such as Stockholm and New York now appear less costly by comparison. "Our research confirms the global trend in price increases for certain foodstuffs and petrol, though the rise is not consistent in all locations. This is partly balanced by decreasing prices for certain commodities such as electronic and electrical goods. We attribute this to cheaper imports from developing countries, especially China, and to advances in technology. "Keeping on top of the changes in expatriate cost of living is essential so companies can ensure their employees are compensated fairly and at competitive rates when stationed abroad. The ten most expensive cities, with last year's ranking in brackets, follows: 1 Moscow; 2 Tokyo (3); London (2); 4 Oslo (10); 5 Seoul (3); 6 Hong Kong (5); 7 Copenhagen (6); 8 Geneva (7); 9 Zurich (9) and 10 Milan (11).