SINGAPORE maintained its spot as the most expensive city in the world, tying with Zurich, an annual survey showed on Thursday (Nov 30).

The pair overtook New York, which tied with Singapore last year for the pole position, based on findings from Economist Intelligence Unit’s (EIU) cost-of-living survey.

The survey, designed to help organisations calculate cost-of-living allowances and build compensation packages for expatriates and business travellers, showed that the global cost-of-living crisis is not over despite inflation moderating.

On average, prices rose by 7.4 per cent yearly in local currency terms. Although price growth slowed from the 8.1 per cent reported in the same period last year, it remains significantly above the 2017 to 2021 trend.

The Republic continued to observe high price levels across several categories, notably transport due to strict controls on car numbers.

“It is also among the most expensive cities for clothing, groceries and alcohol, due to its success as a premier location for business investment,” EIU noted.

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Zurich’s rise, meanwhile, reflects the strength of the Swiss franc. The city also has high prices for groceries, household goods and recreation.

“The supply-side shocks that drove price increases in 2021 to 2022 have reduced since China lifted its Covid-19 restrictions in late 2022, while the spike in energy prices seen after Russia invaded Ukraine in February 2022 has also eased,” said Upasana Dutt, head of worldwide cost of living at EIU.

She noted that Asia continues to have relatively low price increases on average, with four Chinese and two Japanese cities among the biggest movers down the ranking this year.

Despite upside risks, EIU expects inflation to decelerate further in 2024, as the lagged impact of interest-rate rises impacts economic activity and thus, consumer demand.

The 10 most expensive cities are Singapore and Zurich (tie), Geneva and New York (tie), Hong Kong, Los Angeles, Paris, Copenhagen, Tel Aviv and San Francisco.

A spokesperson from the Ministry of Trade and Industry on Thursday said the survey may not reflect the cost of living for Singaporeans, as it is designed to help human resource managers globally calculate cost-of-living allowances for expatriates and business travellers.

The consumption basket used does not reflect what Singaporeans usually consume, the spokesperson added, noting that prices were converted to US dollars to facilitate comparison. Singapore’s strong exchange rate – which does not affect the cost of living for Singaporeans, and instead dampens the effects of imported inflation – thus contributed to its higher ranking, said the spokesperson.