Tokyo is the world’s most expensive city, pushing Luanda, Angola, down to second position, according of the latest Cost of Living Survey by Mercer.
Osaka, another Japanese city, is in third place, followed by Moscow, Russia, and Geneva. Singapore and Zurich are tied for sixth place, while Ndjamena, Chad, drops five place and Hong Kong is in ninth place.
Karachi, Pakistan, is the cheapest city for expatriates, about a third as expensive as Tokyo.
United States city’s don’t show up until 33rd place, held by New York. Los Angeles is 68th on the list, San Francisco is 90th. White Plains, N.Y. is 98th and Washington, D.C. ranks 107th on the list. Chicago and Miami tied at 110. Winston-Salem, N.C., is the least expensive city in the United States.
The survey covers 214 cities across five continents and measures the comparative cost of more than 200 items in each location – transportation, food, clothing, housing, household goods and entertainment.
Designed to help multinational companies determine compensation allowances for expatriate employees, the survey uses New York City as the base, with all other cities compared against it.
“Deploying expatriate employees is becoming an increasingly important aspect of multinational companies’ business strategy, including expansion,” said Nathalie Constantin-Métral, principal at Mercer, is responsible for compiling the ranking each year. “But with volatile markets and stunted economic growth in many parts of the world, a keen eye o n cost efficiency is essential, including on expatriate remuneration packages. Making sure salaries adequately reflect the difference in cost of living to the employee’s home country is important in order to attract and retain the right talent where companies need them.”