The Economist Intelligence Unit (EIU) released its Global Cost of Living Survey this year (2023), which shows that Hong Kong ranks fifth in the global city cost of living, down from fourth last year. As a reference, Hong Kong ranked second in 2019, third in 2020, and fifth in 2021.
According to data from EIU, despite the decline in inflation, the global cost of living crisis is not over yet. This year’s survey found that the prices of more than 200 commonly used goods and services increased by an average of 7.4 percent year-on-year in local currency terms. The increase has eased from last year’s record 8.1 percent but is still significantly higher than the increase from 2017 to 2021.
Among them, Zurich is tied with Singapore as the most expensive city in the world this time round. Zurich’s rise in the ranking reflects the strength of the Swiss franc and the high prices of food and miscellaneous items, household goods, and entertainment.
Tied in third place are New York and Geneva, with Hong Kong in fifth, followed by Los Angeles, Paris, Copenhagen, and Tel Aviv, and San Francisco in sixth, seventh, eighth, ninth, and tenth places, respectively. Although Tel Aviv ranks among the top ten, the survey was conducted before the Israel-Hamas war, which might affect prices as it progresses and in its aftermath.
The study also found that due to the yen’s depreciation, Tokyo’s ranking dropped 23 places to 60th, while Osaka also dropped 27 places to 70th. Incidentally, mainland China’s cities experienced the biggest drop, primarily due to slow post-epidemic recovery and sluggish consumer demand. The cheapest city in the world is Damascus, the capital of Syria, the same as last year, even though the cost of living there has increased by 321 percent.
The survey was conducted between Aug. 14 and Sep. 11, 2023, and compared the prices of more than 200 daily household products and services in 173 cities around the world.
