Globally, Singapore comes second to Tel Aviv, which is now the most expensive city in the world to live in
According to an index compiled by the Economist Intelligence Unit (EIU), Singapore is now the most expensive Asian city in the world to live in and is tied with Paris as the second most expensive city in the world to live in globally.
Singapore and Paris come just under Tel Aviv, which climbed from fifth place last year to head the rankings as the most expensive city in the world to live, in the EIU’s Worldwide Cost of Living 2021 report.
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The EIU revealed that price increases were what contributed to the fastest rise in the cost of living for those living in cities in five years.
Its data also showed that on average, the prices for goods and services have risen 3.5 per cent year on year in local currency terms. This is compared to an increase of just 1.9 per cent last year.
Transport costs were also a large reason why the cost of living increased. In fact, transport costs rose the most rapidly this year mainly because of the increasing price of oil which caused a 21 per cent increase in the price of unleaded petrol.
In Singapore in particular, supply chain disruptions and rising fuel costs have pushed inflation to its highest level in years which is causing the cost of living here to rise.
Of course, with land scarcity driving up the prices of homes, our lack of natural resources and a consistently high focus on education, it is no wonder why this is the case.
In fact, the average annual education inflation rate was 3 per cent over a period of 20 years and as more parents invest heavily in the education of their kids, general education costs will simply continue to be driven up.
The prices of homes in Singapore has also been on a rise as the demand increases. In fact, the median price of an HDB flat is S$495,000, while a private condominium costs about S$1,467,778, according to Smart Wealth.
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This global survey is conducted twice a year by EIU which looks at over 173 countries to gather data. They then look at 400 individual prices across over 200 products and services.
They conduct their surveys between March and September every year and researchers look at a range of stores, supermarkets, mid-priced shops, higher-priced speciality outlets and service providers.
These items are then individually considered across different categories and a comparative index is produced using these items.
The list was certainly surprising this year because Hong Kong, which used to be the most expensive city in the world to live in was pushed down to the fifth spot and Singapore rose by two spots.
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