The Hindu Business Line : Exchange fluctuations cause shifts in `cost of living'

Mercer survey
Mumbai has jumped from position 68 to 52
New Delhi has moved up from 73 to 68
Chennai (133) and Bangalore (134) continue to remain at the lower end of the spectrum

Chennai June 19 Moscow continues to be the world's most expensive city for expatriates, while Asian cities dominate the top five most expensive cities on the global list, according to the latest Worldwide Cost of Living Survey 2007 by Mercer, a global human resources consulting company.

London, in second position, has climbed three places since last year. Seoul has moved down one place to third, followed by Tokyo and Hong Kong.

The survey, which covered 143 cities across six continents, measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.

"There have been some significant changes in the ranking since last year. These are primarily due to exchange rate fluctuations - in particular, the weakening of the US dollar and strengthening of the euro," Ms Rebecca Powers, a principal and senior consultant at Mercer, said in a release.

"As companies continue to send employees on expatriate assignments, they must closely monitor changes in cost of living to ensure their expatriate compensation packages are fair and competitive."

Ms Yvonne Traber, research manager and senior associate at Mercer, said: "The appreciation of the rouble against the US dollar, combined with ever-increasing accommodation charges, has driven up costs for expatriates in Moscow."

Rising property prices have caused Indian cities to move up the ranking. For instance, Mumbai has jumped from position 68 to 52 while New Delhi has moved up from 73 to 68.

However, Chennai (133) and Bangalore (134) continue to remain at the lower end of the spectrum.

New York remains the most expensive city in North America but has dropped five places to position 15.

Other North American cities have dropped more steeply and only New York and Los Angeles rank in the top 50 cities.

"The decline of most US cities in the ranking can be attributed to the depreciation of the US dollar against the euro and other major currencies worldwide. The change reflects a reversal of the situation experienced this time last year, when the majority of US cities climbed the ranking due to the strength of the dollar," said Ms Powers.

Globally, the least costly city is Asuncion in Paraguay for the fifth consecutive year.