The Economist Intelligence Unit (EIU) has just published an annual report of the Worldwide Cost of Living for 2019. According to the report, Karachi is the 6th cheapest city in the world to live in.
EIU is a Britain based forecasting, advisory, research, and analysis firm which publishes a “Worldwide Cost of Living” report each year.
Venezuela’s capital Caracas tops the list for the cheapest cities. Last year, Venezuela remained mired in economic turmoil due to hyperinflation that sparked widespread agitation against the government. Whereas Damascus, the Syrian capital, is the 2nd cheapest city after Caracas. Damascus topped the list in 2018.
The report places four South Asian cities in the top 10. One of them is in Pakistan while the rest are in India. Karachi has been placed at 6th position in the latest edition of the report while Bangalore, Chennai, and New Delhi are ranked 5th, 8th, and 10th respectively.
How Cities are Ranked?
The report compiles a list of both the cheapest and most expensive cities in the world to live in the next year.
It compares prices of 160 essential commodities to compile a ranking. These include food, drink, clothing, household supplies, and personal care items, home rents, transport, utility bills, education, and recreational costs.
“The survey itself is a purpose-built internet tool designed to help human resources and finance managers calculate cost-of-living allowances and build compensation packages for expatriates and business travelers”, the report states.
New York serves as the base city for survey with its index set at 100 and the other cities are ranked comparatively. The survey includes prices from supermarkets, mid-priced stores, and higher-priced specialty outlets.
Top 10 Cheapest Cities
Here are the top 10 cheapest cities in the world:
- Buenos Aires
- New Delhi
Top 10 Most Expensive Cities
Here are the most expensive cities to live in the world as per the report:
- Hong Kong
- New York
- Tel Aviv
Economist Intelligence Unit points that cheaper cities are also the least liveable due to economic, political, security and infrastructural challenges.
Detailed report at Economist Intelligence Unit.