Coming on top of the list of 131 global cities surveyed in the bi-annual report is Singapore. It has dethroned last year’s champion, Tokyo, to become the world’s most expensive city in 2014.
The cheapest city on the 131-city list on the survey is Mumbai, India.
Bangkok is more expensive than its neighbor, Kuala Lumpur, which comes in 90th place.
EIU attributed currency appreciation, solid price inflation and high costs of living for Singapore’s dubious new distinction.
It said car costs have very high related certificate of entitlement fees attached to them, which makes Singapore significantly more expensive than any other location when it comes to running a car.
“As a result, transport costs in Singapore are almost three times higher than in New York. In addition, as a city-state with very few natural resources to speak of, Singapore is reliant on other countries for energy and water supplies, making it the third most expensive destination for utility costs,” it said.
Singapore is also the priciest city in the world to buy clothes.
Last year’s title holder Tokyo, dropped from the top spot to sixth – tied with Melbourne, Geneva and Caracas. It said Tokyo’s decline is due to the weaker yen.
Other most expensive cities trailing behind Singapore are Paris, Oslo, Zurich, Sydney, Caracas, Geneva, Melbourne, Tokyo and Copenhagen.
EIU released its Worldwide Cost of Living survey twice a year.
It compares more than 400 individual prices across 160 products and services in 131 cities, including food, drink, clothing, household supplies and personal care items, home rents, transport, utility bills, private schools, domestic help and recreational costs.
In total, more than 50,000 individual prices are collected in each survey.
“The cost-of-living index uses an identical set of weights that is internationally based and not geared toward the spending pattern of any specific nationality,” says the EIU. “Items are individually weighted across a range of categories and a comparative index is produced using the relative difference by weighted item.”