New York City tops the list as the world’s most expensive city for expats

New York has overtaken Hong Kong in the ranking of the world’s most expensive cities for expats.

The Big Apple took the unwanted title after months of skyrocketing inflation and above-average rent increases that drove the cost of living higher and higher, according to rankings from ECA International.

Hong Kong dropped to second after first place last year, and Geneva, Switzerland, remained in third place this year. London maintained its position in fourth place, while Singapore completed the top five after rising from 13th place in 2022.

Other US cities that appeared in the top 20 included San Francisco, which ranked seventh after moving up four places from last year. Los Angeles moved up six spots to 15th, while Chicago moved up five spots to 20th.

The study focused on expatriate expenses and took into account staples such as rental costs and the price of popular consumer goods, including food.

New York City tops the list of the most expensive cities in the world again, after overtaking Hong Kong in a study led by ECA International that assessed the cost of living

The study looked at rents, which have been rising in New York, as well as the cost of staples like food

Announcing its report on Wednesday, said ECA: ‘ECA International has been conducting cost of living research worldwide for 50 years. It conducts two main surveys a year to help companies assess the cost of living around the world as part of salary calculations for cross-border relocations.

“The surveys compare a suite of similar consumer goods and services commonly purchased by assignees in more than 500 locations around the world, such as coffee, sugar and eggs. ECA’s accommodation data is also taken into account, comparing rental costs in areas typically inhabited by expatriates in more than 430 locations around the world.

“According to the latest report, global food prices have risen on average by about 15 percent over the past year, more than twice as fast as last year.”

According to the ECA, food prices in the US have risen 10 percent since the 2022 report.

Hong Kong, which topped the list in 2022, came in second after being overtaken by New York

Geneva, in Switzerland, remained in third place, while many other European cities topped the rankings

Inflation has slowed in recent months, but remains well above the Federal Reserve’s target of 2 percent.

The price of some popular groceries, including eggs, flour and cookies, remains up to a fifth higher than they were 12 months ago. On the other hand, fuel, gadgets and appliances have bucked the trend.

The ECA’s survey found that Europe in particular is suffering from the rising cost of living, with two-thirds of eurozone countries climbing to the top of the rankings.

Aside from London, other UK cities in the study all dropped in the rankings.

Steven Kilfedder, head of manufacturing at ECA International, said: ‘The cost of living crisis in the UK continues, with rising costs mainly driven by food, utilities and house prices.

“Despite these challenges, all cities in the UK, with the exception of London, are experiencing a drop in the world rankings. This can largely be attributed to the weakness of the pound, which has made the country cheaper for people coming to the UK from other countries.”

San Francisco – the second US city on the list – climbed from 11th to seventh place in the table

Los Angeles rose from 21st to 15th, making it the second city in California to appear in the table

Chicago completed the top 20 after moving up five places in the ranking since last year

The war in Ukraine after Russia’s February 2022 invasion “continues to impact the cost of living in the belligerent countries themselves, the wider region and the rest of the world,” the ECA report said.

“Despite Western sanctions, the Russian ruble has recovered over the past year, moving Moscow up 37 places to become the 25th most expensive location in the world.”

Next week, the US government will publish its latest monthly updates on inflation and the Federal Reserve will meet to discuss interest rate policy.

The bet on Wall Street is that the Fed will delay rate hikes, which would be the first time this has happened in over a year, but could resume rate hikes in July.

A breakdown of inflation data by Dailymail.com in May found that while the price of certain groceries, such as eggs, is still extremely high, tech products have defied inflation

The central bank has raised key interest rates by 5 percentage points since March 2022 in response to out-of-control inflation, which has begun to cool in recent months

Investors are watching to see which will come first: a recession or inflation falling enough to prompt the Fed to cut interest rates, which have risen so high that they have hurt several parts of the economy.

US Treasury Secretary Janet Yellen said Wednesday that the national economy is strong thanks to robust consumer spending.

Yellen said legislation to lift the debt ceiling and reduce US deficits by more than $1 trillion over a decade would aid the Federal Reserve’s efforts to curb inflation.

“My overall impression is that the level of capital and liquidity in the banking system is strong and while this will bring some pain, banks should be able to handle the strain,” she said.