EIU Cost of Living Index 2022
The Worldwide Cost of Living 2022 report was released recently by the London-based Economist Intelligence Unit (EIU). It compares prices of more than 200 goods and services in 172 countries across the globe.
What are the key findings of the report?
- The semiannual report found sweeping changes in the living expenses in cities, triggered mainly because of the war in Ukraine.
- Moscow and St. Petersburg – Russia’s most populous cities – witnessed a drastic increase in the rank of any city in the list. Moscow’s ranking jumped from the 72nd position in 2021 to the 37th position in 2022.
- Living expenses in many European cities declined despite the global energy crisis because of the weakening of currencies and economies. European cities (Luxembourg, Stockholm, Brussels, Lyon, France and Manchester) accounted for five of the 10 cities that fell the most in the rankings in 2022.
- Kyiv – the capital of Ukraine – is not in the 2022 list.
- New York and Singapore have tied to take up the top rank because of high income and a strong US dollar.
- As many as 22 US cities have moved up in ranking because of rapid increase in prices. Cities like Atlanta, Charlotte, Indianapolis, San Diego, and Boston witnessed a major increase in the cost of living. They are among the top 10 largest such increases recorded worldwide.
- Tel Aviv, which stood at the top rank in 2021, fell to 3rd position, with Los Angeles and Hong Kong tied to the 4th place.
- This cost of living crisis is caused by the war in Ukraine and the on-going COVID-19 restrictions implemented in China. Aftermath of the pandemic, supply chain disruptions and climate change are exacerbating the situation further.
- Utility bills across the world has increased by an average of 11 per cent. The price of car also increased by 9.5 per cent on average in local-currency terms. The oil price surged the highest, since it has risen by 22 per cent on average.
- The survey recorded an 8.1 per cent increase in inflation across the world over the past one year. This is the highest ever recorded since the EIU started tracking some 20 years ago.
- Istanbul, Buenos Aires, and Tehran have recorded the highest increase in inflation. The highest rate of inflation was recorded in Caracas (Venezuela), where the cost of living increased by 132 per cent in the past year.
Category: Reports & Indexes Current Affairs