Hong Kong keeps its title as the most expensive city to live in.
Global mobility firm ECA International has released its annual list of the world’s most expensive locations for overseas workers.
Hong Kong topped the 2022 list to reclaim its spot from the 2021 global ranking back-to-back.
Despite the relatively lower impact of rising global inflation on Hong Kong, higher prices and stronger currency kept its status as the most expensive location in the world.
“Rather, it has been the strength of the Hong Kong dollar, which is pegged to the US dollar, in the past year that has enabled it to maintain its position as the most expensive location worldwide as other currencies have weakened,” ECA International Asia regional director Lee Quane said.
Asia is the priciest continent overall with five of its cities occupying half of the ten most expensive locations list. These are Hong Kong, Tokyo (5th), Shanghai (8th), Guangzhou (9th), and Seoul (10th).
Meanwhile, the ten most expensive Asian locations also include Shenzhen (12th), Singapore (13th), Beijing (14th), Yokohama (17th), and Taipei (20th).
ECA International cited how many locations in Asia have witnessed above-trend inflation rates over the past year.
Many mainland Chinese cities rose in the rankings. Quane attributed this to the “continued strength of the Chinese yuan against other major currencies, due to China’s relatively strong economic performance.”
Colombo in Sri Lanka also saw the fastest price growth rate as it climbed 23 places in the rankings.
Meanwhile, most locations within the European Union have dropped in the rankings following an unsteady period for the Euro.
“Nearly every major Eurozone city saw a drop in the rankings this year as the euro performed worse in the last 12 months than the US dollar and British pound,” Quane said.
To calculate the ranking, ECA International combined cost of living and accommodation research to compare expenses of expatriates in 207 cities in 120 countries and territories worldwide. Research variables incorporated food, basic costs, general costs, utility costs, and public transport.