Tel Aviv, the most expensive city in the world ahead of Paris and Singapore

Aerial view of Tel Aviv, May 18, 2021 (illustrative image).

© Gil COHEN-MAGEN / AFP

Text by: RFI Follow

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Tel Aviv has supplanted Paris and Singapore as the most expensive city in the world according to an annual study by " 

The Economist

".

The British business magazine's study points out that supply chain problems have pushed up prices in many cities.

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In fifth place last year, Tel Aviv becomes the most expensive city in the world

 " for the first time, according to a statement accompanying the publication of the study Wednesday.

This position reflects " 

the strength of the Israeli currency, the shekel, against the dollar, because the index takes prices in New York as a basis for comparison

 ," the study said.

►Also read: Paris is now one of the three cities where life is the most expensive in the world

After having shared the first place with Zurich and Hong Kong in 2020, Paris is falling to second position, which it occupies with Singapore in this new edition,

 " he noted.

The study points out that the measured price increase is the fastest recorded in five years, at 3.5%.

Supply chain problems have contributed to the rise in prices, the Covid-19 and social restrictions still weighing on production and trade around the world,

 " notes

The Economist.

Damascus, the cheapest city in the world

Damascus remains the cheapest city in the world due to a currency which crumbles against the dollar and consequently prices in greenbacks which plunge, the civil war continuing to decimate the local economy. The Syrian capital is suffering from very high inflation as are Caracas, Buenos Aires and Tehran, the latter having recorded the strongest advance in the ranking, from 79th to 29th place, the US sanctions leading to shortages and price increases.

In general, the top of the ranking remains dominated by European cities and developed Asian cities while North American and Chinese cities keep relatively moderate prices 

," said the study.

The cheapest cities in dollars are found mostly in the Middle East, Africa or poorer parts of Asia.

Transportation costs have soared in the wake of gasoline prices, the study notes, but tobacco and entertainment have also seen sharp price increases.

The “ 

world index

 ” published by The Economist Intelligence Unit (EIU) ranks 173 cities based on price based on a basket of more than 200 products and services.

(

with AFP

)

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