RTL Today – Surprising: Luxembourg plummets in the ranking of the most expensive cities in the world
The Luxembourg capital has taken a huge dive in the latest ranking of the most expensive cities in the world established by the weekly The Economist.
New York is, for the first time, at the top of the ranking of the most expensive cities in the worldTied with Singapore, a regular in first place, propelled by the global crisis in the cost of living, according to the weekly The Economist.
“Prices soared by 8.1% on average over one year (in local currency) in 172 major cities around the world, the largest increase recorded for at least 20 years“, according to the 2022 report on the cost of living, published Thursday by the British journal.
These increases reflect in particular the impact of “the war in Ukraine and ongoing pandemic-related restrictions (which) disrupt supply chains“and touched in particular”energy and food“.
LUXEMBOURG LOSES 38 PLACES
The Luxembourg capital records the biggest drop in 12 months, losing 38 places, tied with Stockholm. Luxembourg leaves the top100 of this ranking and is now in 104th place.
It should be noted that European cities are down overall in the ranking, because the energy crisis and the weakening of the economies have weighed on the euro much more than on the dollar. Of the 10 cities that have fallen the most, five are European.
The descent from most European cities. Luxembourg and Stockholm therefore tumbled 38 places, but Lyon fell 34 places, Manchester lost 32 and Brussels 28. Paris limited the damage by losing only four places, to ninth position.
New York and Singapore – the city-state tops the rankings for the eighth time in ten years – dethrone Tel Aviv, cultural and economic heart of Israel, which topped the ranking last year.
The strength of the dollar in recent months, a safe haven in times of crisis, raises cities in the United States in the ranking because this is achieved after conversion of prices in the American design: its increase therefore translates mechanically into lower prices outside the United States.
Los Angeles thus climbs to fourth place and San Francisco to eighth.
AT ISSUE: THE WAR IN UKRAINE
Moscow and St. Petersburg have seen their prices soar and jump in the rankings – the Russian capital moves up 88 places to 37th position – under the effect of Western sanctions and a dynamic energy market which supports the rouble, notes The Economist.
The fastest price increases were for gasoline (as in 2021), which rose 22% in local currency on the heels of crude prices, but also for electricity, food and utilities. basic household items.
On the other hand, prices for leisure remained subdued, “which may present weaker demand, as consumers focus spending on essential goods“, according to The Economist, which is based on a survey carried out between August 16 and September 16.