After the pandemic and its resulting inflation, Tel Aviv, Israel, has become the most expensive city in the world. It’s the first time the city has topped the list. Read on to discover what exactly pushed it to the top…
Tel Aviv Is The World’s Priciest City
That’s right: Tel Aviv has become the world’s most expensive city to live in, according to a new global survey published last week. Last year, the survey, compiled by Economist Intelligence Unit (EIU), had a tie for first place, with Paris, Zurich, and Hong Kong coming in first. However, this year, Tel Aviv has climbed from sixth place all the way to first, one of the biggest jumps for a city ever.
The EIU compiles the survey, known as the Worldwide Cost of Living Index, by comparing prices for goods and services in 173 different cities. This year, Tel Aviv managed to climb up as a result of two things. First, the strength of the national currency, the shekel, against the U.S. dollar, which the EIU uses for its survey. Meanwhile, the city has also seen a historic rise in the prices for transport and groceries, among many other goods.
Rounding out the rest of the list were Paris, Singapore, Zurich, Hong Kong, New York, Geneva, Copenhagen, Los Angeles, and Osaka. While Tel Aviv has specific reasons for its increases, other problems are driving up prices all around the world…
Risings Prices Everywhere
This year’s Worldwide Cost of Living Index also revealed some other information: prices around the world rose, on average, three-and-a-half percent in local currency. That’s the fastest inflation has risen in the past five years! This does not include cities with particularly high inflation rates: Buenos Aires, Caracas, Damascus, and Tehran. According to Upasana Dutt, head of worldwide cost of living at The EIU, social restrictions as a result of the coronavirus pandemic “have disrupted the supply of goods, leading to shortages and higher prices.”
“We can clearly see the impact in this year’s index, with the rise in petrol prices particularly stark,” Dutt explained. “Over the coming year, we expect to see the cost of living rise further in many cities as wages increase in many sectors.”
Without a doubt, this is something we’ll all need to keep an eye on in the coming years!