According to the latest report from The Economist Intelligence Unit (EIU), cities in almost all of America and Africa have seen their cost of living fall.
The report, which is called ‘The Worldwide Cost of Living 2020’ highlights how the new Coronavirus pandemic impacted the cost of living in the 133 cities studied, causing economies such as Singapore and Osaka, in Japan, to lose their place at the top of the ranking.
According to the EIU, they are Zurich, Switzerland; Paris France; and Hong Kong of the People’s Republic of China, which occupy the first three places. The document highlights that cities in America, Africa, and Eastern Europe have become less expensive since 2019, “while cities in Western Europe have become more expensive.”
EIU Director of Global Cost of Living Upasana Dutt argued that “Asian cities have traditionally dominated the rankings in recent years, but the pandemic has reorganized the rankings for this edition.”
The foregoing, he points out, is partly reflected by the rise in European currencies against the dollar. Also consider the Covid-19 pandemic, supply chain problems, consumer preferences and changes, and the impact of taxes and subsidies:
“Comparatively, high-income consumers have not been affected by the pandemic; Although they may buy less, the prices of premium products have shown resilience, ”the report explains. On the other hand, “in the midst of the pandemic, the most price-conscious consumers have opted for cheaper products, increasing-price competition for less expensive goods,” he concludes.
In this 30th edition of the report, the EIU highlights that Mexico City was ranked 73rd out of 133 cities included, forming part of the ten with the greatest drops in the price level, as has happened with Reykjavik, Bangkok, Moscow, Kiev, Istanbul, Nairobi and Lima.
In the case of two cities in Brazil: Sao Paulo and Rio de Janeiro, they stood out for being the ones with the greatest price drops. The reason, “the weakness of its currency and increasing levels of poverty.”
According to ‘The Worldwide Cost of Living 2020’, the 10 most expensive cities on the list are:
- Zurich, Switzerland.
- Paris France.
- Hong Kong, China.
- Singapore, Singapore.
- Tel Aviv, Israel.
- Osaka Japan.
- Geneva, Switzerland.
- New York, USA.
- Copenhagen, Denmark.
- Los Angeles United States.
/ With information from The Economist Intelligence Unit: Worldwide Cost of Living 2020, How is Covid-19 affecting the prices of consumer goods? /