From city to city, the amount of money required to cover daily costs like rent and food varies substantially. Additionally, some cities, such as New York City, are renowned for having particularly high housing costs.
In light of this, how expensive are daily expenses in New York City in comparison to locales like Bangalore, India, or Beirut, Lebanon?
Below we compare the cost of living and purchasing power in 578 various places throughout the world using data from 2022 from Numbeo, using New York City as a baseline for comparison.
The Cost of Living Index:
Numbeo, the largest user-contributed collection of data on cities and countries, found that while New York City is frequently cited as one of the most expensive cities in the world, there are a number of other places that are significantly more expensive.
Here is a comparison of the cost of living amongst 578 cities. To put things in perspective, if a city has a cost of living index of 121, that indicates that, on average, its daily costs are 21% greater than those in New York:
The list’s top spot goes to Hamilton, the capital of Bermuda, where the cost of living is about 50% greater than in New York.
Why does Hamilton cost so much? Prices in the territory are probably high as a result of the fact that almost everything—including clothes, groceries, and gas—must be imported onto the small British archipelago.
The second-highest cost city after New York City is Zurich, Switzerland, where costs are nearly 30% higher. The analysis shows that food and drink are particularly expensive in the area, with restaurant prices being 55% more expensive and grocery being 58% more expensive than in New York City.
But it’s important to remember that although while Zurich has a high cost of living index, the city also has a high level of purchasing power.
Local Purchasing power index :
The quantity of goods and services that a person with an average salary may purchase in a given city is measured using the concept of purchasing power.
Returning to Zurich, despite having greater expenditures, people there often have 30% more purchasing power than those in New York City.
In comparison, Hamilton, Bermuda’s typical customer has a comparatively low level of purchasing power. Consumers can afford around 30% less than those in New York City, based on the city’s average net pay.
Prices are rising as a result of inflation.
Cost of living has been a major concern for many people worldwide due to rising inflation and higher pricing for consumer items.
The COVID-19 pandemic, along with supply chain concerns, the Russia-Ukraine conflict, and pent-up demand as a result, have all contributed to the global cost of living crisis that has been going on since late 2021.
But according to UBS Chief Economist Paul Donovan, we’ve probably already seen the worst of it, and in the second half of the year, inflation will probably start to decline globally.