New worldwide price comparison. The ranking shows how expensive life is in the Czech Republic
High inflation, expensive energy and rising housing costs. In 2022, Czechs struggled with rising prices for most goods and services. Despite this, the Czech Republic is only in second place in the ranking of the most expensive countries in the world to live in by the Numbeo server. Prague took 271st place out of a total of 540. Brno is in 306th place, followed by Olomouc, Pilsen and Ostrava.
The Numbeo server monitors and compares statistical data in the world’s cities regularly. For overall comparison at the same time, the American New York serves as a fixed point. It compares the cost of living based on the prices of food, services, transport, but also the purchasing power in the given location – that is, what can be bought for an average salary.
Bermuda’s Hamilton leads the world ranking. The cost of living here is 155 percent higher than in Prague. According to data from the Numbeo server, the monthly costs per person, which do not include rent, amount to 43,000 crowns in Hamilton. For comparison, the company estimates the cost of living in Prague for individuals at just under 18,000 crowns.
In a European comparison, the Czechia performs similarly to the rest of the world – i.e. it is in the middle of the ranking. Prague occupies the 136th position overall out of a total of 238 cities. People living in the Latvian capital Riga, Greek Thessaloniki, Italian Palermo, Spanish Madrid or Palma de Mallorca, or Slovenian Ljubljana have a similar situation with prices.
The most expensive cities to live in worldwide
1. | Hamilton, Bermuda | 142.1 |
2. | Basel, Switzerland | 127.0 |
3. | Zurich, Switzerland | 120.8 |
4. | Lausanne, Switzerland | 119.7 |
5. | Zug, Switzerland | 118.5 |
6. | Bern, Switzerland | 116.1 |
7. | Santa Barbara, USA | 112.2 |
8. | George Town, Cayman Islands | 107.2 |
9. | Geneva, Switzerland | 107.1 |
10 | Honolulu, Hawaii | 102.7 |
11. | New York, USA | 100.0 |
271. | Prague, Czech Republic | 54.6 |
292. | Bratislava, Slovakia | 50.4 |
Although financial life in the Czech Republic looks favorable compared to Hamilton, domestic prices continue to rise by leaps and bounds. Inflation in November already reached 16.2 percent, and food prices even rose by 27.1 percent in the same month. December figures published by the Czech Statistical Office on Wednesday. Analysts disagree on whether inflation slowed last month or will continue to rise. However, they expect year-on-year price increases of between 15.8 and 17.2 percent.
According to the Czech National Bank, inflation should reach a single-digit value in the middle of this year. It could then drop to a two percent value during the first half of next year.
Rents have become more expensive in the Czech Republic
The Numbeo server pays special attention to the comparison of rental prices, they are not included in the basic comparison.
In this comparison, Prague is 191st in the world ranking. The Chinese city of Suzhou, British Leeds and Austrian Salzburg are in a similar situation, for example. Compared to last year, however, Prague jumped up 76 places.
Rent prices rose significantly last year due to expensive mortgages and high demand for housing. For example, according to the UlovDomov.cz survey, rents in Prague increased by 22 percent last year, and in regional cities by around ten percent.
Compared to New York rents, which according to Numbeo are the highest worldwide, rents in Prague are 72 percent lower. While in the center of Prague, a tenant will pay approximately 21,889 crowns for a month’s accommodation in a 2+kk, in the center of New York the prices start at around 84,833 crowns.
In a European comparison, people pay the most for rent in Geneva, Switzerland. manages the Swiss city of Zug and the British London. On the contrary, least in the Bosnian city of Tuzla. Prague is ranked 74th, Brno even as high as 140th, Olomouc at 169th, Ostrava at 178th and Pilsen at 182nd.
However, according to analysts, rising rental prices have already reached their maximum. By the end of the year, the steep growth subsided. In the 4th quarter of last year, compared to the 3rd quarter, the average 2+kk apartment in Prague was 850 crowns lower. In Ostrava, the available 3+kk apartment was even lower by 2358 crowns, reports the portal UlovDomov.cz. According to experts however, the decline in the real estate market will certainly not be widespread or significant.