How Expensive Is The Cost of Living in Europe?

• Most expensive countries for expatriates to live in are: Switzerland; Monaco; United Kingdom; Norway; and Liechtenstein
• The most expensive cities for expatriates to live in are: Zurich (Second most expensive in the world); Geneva; Monaco; London; and Oslo
• The cheapest city for expatriates to live in is: Bucharest in Romania (764 most expensive in the world)

Zurich as the most expensive city in Europe has an overall cost of living index of 134.23 compared to New York with an index of 100, and Tokyo with an index of 139.89. Zurich’s cost of living index is similar to cities such as Geneva, Hong Kong, and Luanda.  Zurich is the most expensive city in Europe mainly because the Eurozone crisis has created a flight to safety in Swiss Francs, which are generally considered safer. The inflows have resulted in the Swiss Franc appreciating, and as a consequence prices have gone up compared to the Euro and the US Dollar. 

Particularly expensive in Zurich are the following basket groups, groceries, healthcare, restaurants meals out and hotels, and transport.  For example a 1 kg bag of apples averages $5.08 in Zurich, 1 kg boneless, skinless, chicken breast $32.65, 1 kg cheddar cheese $23.80, and a 500g loaf white bread $3.17.  A private practice doctor visit for an uninsured patient is likely to cost $125 on average, and a private hospital stay, including nursing care, medications, diagnostic tests, food, and related costs will average $3,675 per day.  A cappuccino (regular, medium) costs on average $5.14, while a meal out (for 2 mid-range restaurant) $103.40.  The average price over the last year for highest available octane petrol / gasoline has been just over $2 per litre.

The below ranking shows the overall Cost of Living Rankings in Europe by city:

1. Switzerland, Zurich
2. Switzerland, Geneva
3. Monaco, Monaco
4. United Kingdom, London
5. Norway, Oslo
6. Liechtenstein, Vaduz
7. Denmark, Copenhagen
8. Russia, Moscow
9. Jersey, Saint Helier
10. France, Paris

Xpatulator.com Head of Client and Marketing Services Denise McManus comments that: “Expatriates should remember that all other things being equal, prices rise fastest in the places where talented people want to be, especially when combined with a sustained high demand for high level skills, where resources such as land are scarce.”

For the full listing for Europe and article go here.

What are the Cost of Living Rankings for Asia Pacific for October 2012?

• The most expensive countries in Asia Pacific for expatriates to live in are: Japan; Papua New Guinea; Singapore;  Australia, China
• The most expensive cities for expatriates to live in are: Tokyo (the most expensive in the world); Hong Kong; Yokohama; Osaka; and Nagoya
• The cheapest city for expatriates to live in is: Dushanbe in Tajikistan (766 most expensive in the world)

Which cities / countries drop in the ranking, and which moved up?

• The biggest mover down the rankings is Tashkent in Uzbekistan, which has dropped to become the 474th most expensive location in the world.
• The biggest mover up the rankings is Papeete in French Polynesia, which has risen to be the 117th most expensive location in the world.

Reasons for this movement: 

Tashkent has become less expensive for expatriate’s to live in relative to other global locations. This is mainly due to the depreciation of the Uzbekistan Som against the US Dollar over the past year.  In September 2011 US $1 could buy UZS 1750, today that has risen to over UZS 1920, increasing expatriate purchasing power by just under 10% in one year.

Papeetes high cost of living is mainly due to the fact that most goods and services are imported at great cost. Furthermore the economy is exposed to the global economy through its heavy reliance on tourism which went into a long decline from 2006 and was compounded by the global recession. Groceries and communication are particularly expensive.

Tokyo as the most expensive city in Asia-Pacific and the world has an overall cost of living index of 139.89 compared to New York with an index of 100. Tokyo is followed by Zurich, Geneva and Luanda in the world rankings.

Tokyo is the most expensive city mainly because of the historical strength of the Japanese currency, the high population density, the high level of salaries, and the lack of resources which result in a high proportion of imports. Particularly expensive in Tokyo are the following basket groups groceries, healthcare, housing, and transport. Benchmark price in a major international retail store for 1 kg apples is $7.08, 1 kg boneless, skinless, chicken breast $11.91, 1 kg cheddar cheese $18.22, and 1 L full cream milk $2.73.

Benchmark price for a private practice doctor visit for an uninsured patient is $125, and a private hospital stay per day including nursing care, medications, diagnostic tests, food, and related costs is $3,675. Benchmark rental for a secure upmarket unfurnished apartment (3 bedrooms) is $6,293 in a central location, and $3,209 in a suburban location, per month, excluding utilities.

The below ranking shows the Top Ten Cost of Living Rankings in Asia Pacific by city:

1. Japan, Tokyo
2. China, Hong Kong
3. Japan, Yokohama
4. Japan, Osaka
5. Japan, Nagoya
6. Japan, Kobe
7. Japan, Kyoto
8. Japan, Kawasaki
9. Japan, Fukuoka
10. Papua New Guinea, Port Moresby

Xpatulator.com Head of Client and Marketing Services Denise McManus that: “Expatriates have long known that Tokyo is a very expensive posting. However it is possible to live within your budget by making sensible choices, for example we know that taxis are expensive, so rather save money and make use of the train service. There are also many expensive restaurants, particularly western branded ones, rather explore some of the many lower and medium-end options.”

For the full Cost of Living Rankings for the Asia Pacific Region go here.