New research by the Economist’s Intelligence Unit (EIU) has placed Paris at number one, along with Hong Kong and Zurich, as the most expensive city in the world.
The report ranked 133 countries across the globe, comparing over 400 individual prices for the things people need and buy in their daily lives, covering 138 different products such as rents, mortgages, food, drinks, utility bills, clothing and education.
Last year, Hong Kong won first place with Osaka and Singapore, but the last two are now in fourth and fifth place respectively. The reason for this change is due to currency changes caused by Covid-19. The report said that “in September 2020, when our survey was conducted, the currencies were weakest in the Americas and strongest in Western Europe.”
Paris is known to be an expensive place to rent or buy property. As reported by Local, the average price per square meter is over € 10,500 ($ 12,423). however, the Local was skeptical about part of the methodology as the EIU study valued 1 kilo of bread at $ 6.10 (€ 5.13) in Paris, while it considers the figure to be the most bakeries (bakeries) at around $ 3.22 (€ 2.72). The price of a baguette across France is normally around € 1 ($ 1.18).
The top ten cities in 2020 (with last year’s ranking in parentheses) are:
- Zurich – rank 1 (+4)
- Paris – rank 1 (+4)
- Hong Kong – rank 1 (0)
- Singapore – rank 4 (-3)
- Tel Aviv – rank 5 (+2)
- Osaka – rank 5 (-4)
- Geneva – rank 7 (+3)
- New York – rank 7 (-3)
- Copenhagen – rank 9 (+2)
- Los Angeles – rank 9 (-1)
The report looked at how the impact of Covid-19 has changed prices around the world. Of the ten categories covered in the report, the study states that “tobacco and entertainment (including consumer electronics) have seen the biggest price increases since last year, while clothing prices have increased. experienced the greatest decline ”.
Changes in lifestyle have also played a role – with many more people staying at home, the way consumers view products as essential has changed. Prices for these essentials have been more resilient, while non-essentials have not performed as well (clothing is a good example, where weak demand during the pandemic has driven prices down).
The study reports that while a reduction in demand for bottled water “comes as no surprise,” it finds that meal prep kits have replaced restaurant meals for many middle-class families.