<p>Tokyo remains the world´s most expensive city, according to the latest <i>Cost-of-Living Survey</i> by Mercer Human Resource Consulting. London moved up five places in the rankings to second place, followed by Moscow, which moved down a place this year. Asuncion in Paraguay is the least expensive city in the survey.</p>
<p>"There have been some dramatic movements in the rankings this year, which are largely due to currency fluctuations, particularly with the US dollar and the Euro," says Rebecca Powers, an international consultant with Mercer.</p>
<p>With New York as the base city scoring 100 points, Tokyo scored 130.7 and is more than three times costlier than Asuncion, which has an index of 42.7.</p>
<p>The gap between the world´s most and least expensive cities has narrowed marginally this year - by less than two points compared to four points last year and 15 points in 2002.</p>
<p>The survey includes 144 cities and measures the comparative cost of more than 200 items in each location. These include housing, food, clothing, and household goods as well as transportation and entertainment (see attached chart). The data are used to help multinational companies and governments determine compensation allowances for their expatriate workers.</p>
<p><b>Europe</b></p>
<p>London is the most expensive city in Europe, with a score of 119. High accommodation and transportation costs, together with the appreciation of the pound against the US dollar, have pushed the city up in the rankings. However, Ms. Powers notes, "The scores are based on the cost of living for expatriates, who are more likely to stay in Central London where accommodations are most expensive." Glasgow and Birmingham rank lower in the UK at positions 41 and 51, respectively (scores 84.1 and 82.8, respectively).</p>
<p>After London, Geneva is the next most expensive city in Europe ranked in 6th position (score 106.2) followed by Copenhagen in 8th place (score 102.2). Other high-scoring cities include Zurich (rank 9, score 101.6), Milan (rank 13, score 98.7), Dublin (rank 14, score 96.9), Oslo (rank 15, score 96.2), and Paris (rank 7, score 94.8). Ms. Powers comments, "Since the Euro was introduced in 2002, many European cities have moved up in the rankings."</p>
<p>At the other extreme, three of the five cheapest European cities are in countries that gained EU accession in May. Bucharest in Romania is the least expensive European city ranking 129 (score 60.1), followed by Limassol in Cyprus ranking 95 (score 70.3).</p>
<p>"Looking ahead, we are likely to see cities in the new EU accession countries rise in the rankings as more investments are made in commercial development and the standards of living increase," Ms. Powers explains.</p>
<p><b>The Americas</b></p>
<p>New York remains the most expensive city in North America ranked in 12th position (score 100). Other costly cities include Los Angeles (rank 27, score 86.6), Chicago (rank 35, 84.5) and San Francisco (rank 38, score 84.3). Pittsburgh is the cheapest of the 20 US cities surveyed, ranking 112 (score 66.5). All of the US cities have dropped in the rankings due to the depreciation of the dollar against European, Canadian, and Asian Pacific currencies.</p>
<p>"Cost of living differences within the US can be even more than those between the US and other popular destinations worldwide due to variations in accommodation costs," says Ms. Powers.</p>
<p>Though still relatively inexpensive, Canadian cities continue to move up in the rankings due to the strength of the Canadian dollar. Toronto is in 89th place (score 71.8) and has become more expensive than a number of US cities. Ottawa is the least expensive Canadian city, ranked in 24th position (score 62.6).</p>
<p>Since the devaluation of the Argentinean currency in 2002 and the subsequent financial crisis, cities in Latin America have become among the cheapest in the survey. Asuncion is the least expensive city globally at position 144 with a score of 42.7. Other cheap cities include Montevideo, Buenos Aires, and Bogot¡ in places 143 (score 47.2), 141 (score 47.7), and 139 (score 48.6), respectively. At the other extreme, Lima in Peru is the most expensive city in Latin America at position 118 with a score of 63.6.</p>
<p>San Juan in Puerto Rico is the costliest city in Central America and the Caribbean ranking 65 (score 77.9). Santo Domingo in the Dominican Republic is the least expensive (rank 142, score 47.3) due to a dramatic devaluation in the local currency, high inflation, and a bank crisis that hit the country last year.</p>
<p><b>Australia/Asia</b></p>
<p>Four of the world´s ten costliest cities are in Asia with Tokyo being the most expensive city globally. Osaka ranks 4<sup>th</sup> (score 116.1) followed by Hong Kong in 5<sup>th</sup> place (score 109.5) and Seoul in 7<sup>th</sup> place (score 104.1). Chinese cities, though still relatively expensive, have dropped in the rankings as the Chinese currency is pegged to the US dollar and has therefore been affected by its depreciation. Beijing ranks 11<sup>th</sup> (score 101.1) followed by Shanghai in 16<sup>th</sup> place (score 95.3).</p>
<p>Cities in Australia and New Zealand have increased most in the rankings this year due to the significant appreciation of local currencies against the US dollar. Sydney is the most expensive city in the region, rising from 67<sup>th</sup> place in 2003 to 20<sup>th</sup> place this year with a score of 91.8. Other high-scoring cities in Australia include Melbourne (rank 67, score 77.5) and Brisbane (rank 87, score 72.7). Auckland is the costliest city in New Zealand ranking 80<sup>th</sup> with a score of 74.2. Although these cities have increased in the cost rankings this year, they continue to rate among the highest for quality of life.*</p>
<p>"Living costs in Australia and New Zealand have risen faster than anywhere else globally, mainly due to the strength of the currencies in these countries," says Ms. Powers.</p>
<p>Individual reports are produced for each city surveyed. For additional information or to purchase copies of the city reports, visit <a target="new" href="http://www.mercerHR.com/costofliving">www.mercerHR.com/costofliving</a> or call Mercer Global Information Services at 800 333 3070.</p>
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