Tokyo is now the most expensive city in the world to live in according to research done by the Economist Intelligence Unit. The rise in the yen (or collapse of the dollar) probably has something to do with this.
London has fallen to 27th place, from 8th ranking 2008, because of the plunge in the value of sterling, while New York has jumped from 39th rank in 2008 to 23rd place.
By comparing the ranking of cities in September 2008 (when the price survey was conducted) to the ranking in February 2009 (adjusting the September price data for recent exchange-rate movements), analysts see a sharp change in number as a result of the currency dislocation.
“Two factors drive the relative cost of living: local prices and exchange rates. Normally our ranking of cities by cost of living is relatively stable, but in the current global climate changes in exchange rates have significantly altered our assessment of the most and least expensive cities,” said Jon Copestake, editor of the report.