Prague is catching up with the cost of living another expensive metropolis. It follows from the new price chart Global cost of living, which is compiled twice a year by The Economist Intelligence Unit (EIU), a sister organization to The Economist.
In the spring and autumn, it compares the prices of the same goods and services in 173 cities around the world. In the latest issue published this week, Prague became the ninth biggest jumper – it moved from 87th to 79th place. The comparison base for the entire ranking is New York, against which the price level in Prague is now at the level of 62 percent. In the previous measurement, it was 59 percent.
According to the EIU, living in Prague will be exactly as expensive as in Toronto, Canada, and almost as expensive as in Dubai, where prices are based on 64 percent of New York.
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Tel Aviv holds the absolute lead, followed by Paris and Singapore. The Israeli metropolis jumped up, among other things, due to the appreciation of the local currency thanks to a well-managed pandemic. On the other hand, it is the cheapest in Damascus, Tripoli and Tashkent. Tehran is the biggest jumper for the second time in a row, the biggest discount occurred in Rome.
The upward movement corresponds to the current inflation in the Czech Republic and the rapid rise in prices of real estate and rents. According to central bank estimates, year-on-year price growth in the Czech Republic may exceed seven percent in January, but then the CNB wants to push it back to its 2% target by the end of next year. In an interview with Respekt, CNB Governor Jiří Rusnok said this week that there is “no doubt” about the slowdown in inflation next year.