(CNN) — All over the world, it’s been a tough year on wallets.
Supply-chain blockages and changing consumer demand have pushed up the cost of living in many of our biggest cities, according to new research published Wednesday, and inflation is the fastest recorded over the past five years.
The Israeli city of Tel Aviv topped the rankings for the first time, overtaking last year’s leader Paris, which is now tied in second place with Singapore.
The EIU attributes Tel Aviv’s sharp rise on the index to increases to grocery and transport prices and the strength of the Israeli shekel against the US dollar.
The City of Light landed in second place in 2021.
Kiran Ridley/Getty Images
Everyday goods and services
The 2021 Worldwide Cost of Living index tracks the cost of living across 173 global cities — 40 more than last year — and compares the price of more than 200 everyday products and services.
Data for the survey, which has been carried out for more than three decades, is gathered by EIU’s global team of researchers each March and September.
The index is benchmarked against prices in New York City, hence cities with currencies that are stronger against the US dollar are likely to appear higher in the rankings.
Zurich and Hong Kong are at Nos. four and five respectively, having held the top spot last year alongside Paris. New York, Geneva, Copenhagen, Los Angeles and Osaka round up the rest of the top 10.
The upper rankings rankings continues to be dominated by European and developed Asian cities. The lowest-ranking cities are mainly in the Middle East, Africa and less wealthy parts of Asia.
The EIU reports that, on average, prices for the goods and services covered by the index have risen by 3.5% year on year in local-currency terms, compared with an increase of just 1.9% this time last year.
Those much-reported global supply-chain problems have contributed to price rises and the Covid-19 pandemic and social restrictions are still affecting production and trade around the world. With a new coronavirus variant currently causing widespread alarm, these issues won’t be going away in a hurry.
Rising oil prices drove a 21% increase in the price of unleaded petrol, reports the EIU, but there were also big price hikes in the recreation, tobacco and personal care categories.
2 US cities are among the world’s most expensive
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