London one of twenty most expensive cities in the world
London is one of the twenty most expensive cities in the world according to the latest Worldwide Cost of Living Survey.
Published by the Economist Intelligence Unit, the survey revealed that Manchester, the other UK city in the report, lies in 53rd place in the ranking of over 130 cities.
The survey looked at over 400 individual prices on a city-to-city basis, tracking the changes in price for a number of goods over the last ten years to see how price movement had affected UK consumers. While the prices of staple goods were shown to have persistently risen, non-essential goods had been more sensitive to the economic climate.
The figures showed that the price of a loaf of bread had more than doubled in London in ten years, with the cost of a bottle of wine rising by 50%. Taxes have also played a part, with petrol pump prices up by over 75% and cigarette prices by almost 60%.
Jon Copestake, the editor of the survey said: “Over time we have seen the price of commodity driven groceries like bread and petrol rise substantially. However, less essential items have actually been falling in price recently, after rising during better economic times”
The report’s authors said the trend highlights the difficulties faced by retailers in recent years. Consumers have seen the price of essential goods rising steadily. During periods of growth incomes could support inflation, but a worsening economic climate has forced cutbacks in other areas. The authors said this had intensified price competition, making high profile casualties inevitable.
Outside the UK the survey revealed that Zurich and Geneva have surged up the cost of living ranking. Currency flight from the Eurozone into Swiss Francs has seen Zurich overtake Tokyo to become the world’s most expensive city for the first time in at least 20 years. The financial centre is now almost 50% more expensive than London.
