New York topped the list of the most expensive cities in the world for the first time, tied with Singapore, which is usually at the top, due to the global cost of living crisis, according to The Economist magazine, which included four Arab cities among the ten cheapest cities to live in the world.

The 2022 cost of living report published by the British magazine on Thursday stated that "prices rose by 8.1 percent on average year-on-year (in local currency) in 172 major cities worldwide, the largest increase recorded in at least 20 years."

This increase particularly reflects the impact of "the war in Ukraine and ongoing pandemic-related restrictions disrupting supply chains" affecting especially "energy and food."

New York and Singapore - the city-state at the top rank for the eighth time in ten years - replaced Tel Aviv, Israel’s economic and cultural nerve center, which topped the ranking last year.

Top 10 most expensive cities to live

The strength of the dollar in recent months, as a safe haven in times of crisis, has pushed American cities to the top ranks of the classification because this happens after converting prices into the US currency: thus its rise automatically leads to lower prices outside the United States.

Thus Los Angeles ranked fourth and San Francisco eighth.

Moscow and Saint Petersburg witnessed a rise in prices and jumped in the global ranking - with the Russian capital reaching 37th place under the effect of Western sanctions and the booming energy market supporting the ruble, as The Economist said.

But most other European cities declined as the energy crisis and weak economies affected the euro and local currencies. Thus Paris lost four places to reach ninth place while Lyon dropped 34 places to reach 90th.

The fastest price increases were in fuel (as happened in 2021), which rose by 22 percent in local currency amid rising oil prices, but also electricity, food, and basic materials.

By contrast, prices for entertainment activities remained moderate "reflecting weak demand as consumers focus their spending on essential goods," according to The Economist which relied on the results of a study conducted between August 16 and September 16.

As for the least costly cities to live in worldwide, Damascus came first, followed by Tripoli in second place and Tehran third. The Tunisian capital Tunis ranked fourth, and the Algerian capital ranked tenth.

The magazine stated that this ranking reflects the weakness of the economies of these countries and their currencies, adding that Damascus and Tripoli, which are often at the bottom of the ranking, only witnessed moderate inflation rates in local currency during the past year.
The magazine stated that this ranking reflects the weakness of the economies of these countries and their currencies, adding that Damascus and Tripoli, which are often at the bottom of the ranking, only witnessed moderate inflation rates in local currency during the past year.