On average, prices have risen by 7.4% year on year in local currency terms for over 200 commonly used goods and services, a drop from the record 8.1% increase last year but still “significantly higher than the trend in 2017-2021”.
Singapore has the world’s highest transport prices, owing to strict government controls on car numbers. It is also amongst the most expensive for clothing, groceries and alcohol. Zurich’s rise reflected the strength of the Swiss franc and high prices for groceries, household goods and recreation.
Geneva and New York tied for third place, while Hong Kong was fifth and Los Angeles in sixth. Asia continues to see relatively lower price increases on average compared to other regions. Chinese cities have fallen in its rankings with four cities – Nanjing, Wuxi, Dalian and Beijing – among the biggest movers down the rankings this year along with Osaka and Tokyo in Japan.
On the other hand, cities in Latin America and western Europe have moved up. The Mexican cities of Santiago de Querétaro and Aguascalientes were the biggest movers up the rankings, with the peso proving to be one of the strongest emerging market currencies in 2023, on the back of interest-rate rises and strong inward investment. European cities, in general, have moved up the ranks amid sticky inflation as well as appreciation in the euro and other local currencies in the region.
According to the economistgroup, Reuters