Some of the world’s most expensive cities and cheapest cities belong to Asia.
Interestingly, the Indian subcontinent (India, Pakistan, Bangladesh, Nepal and Sri Lanka) is home to cities that offer the best value for money, according to the Economist Intelligence Unit survey .
The Worldwide Cost of Living is a bi-annual survey that compares more than 400 individual prices across 160 products and services.
This includes food, drinks, clothing, household supplies and personal care items, home rents, transport, utility bills, private schools, domestic help and recreational costs.
Take a look at the world’s 10 cheapest cities…
Karachi (Pakistan)
Index score: 44
Global rank: 132
Average price of 1 litre petrol: $1.12
Average price of 1 kg bread: $1.04
Pakistan's financial capital, Karachi has emerged as the world's cheapest cities to live in.
The study notes that cities like Karachi faces economic, political and security challenges.
Bangalore (India)
Index score: 44
Global rank: 132
Average price of 1 litre petrol: $1.28
Average price of 1 kg bread: $1.13
Among the 3 cities listed from India, IT hotspot Bangalore is surprisingly ranked as the cheapest city from India.
“Structurally low wages and price subsidies on some staples have made for a highly price sensitive market. Falling oil prices will add further weight to this,” EIU study reveals about Indian cities.
Caracas (Venezuela)
Index score: 45
Global rank: 130
Average price of 1 kg bread: $3.36
Caracas has slipped 124 places, from 6th position last year.
A number of markets like Carasas have seen currency instability, with falling oil prices also adding a deflationary element to pricing, says the Economist Intelligence Unit survey.
“In Venezuela the adoption of multiple exchange rates has made pricing Caracas almost impossible,” it states.
Mumbai (India)
Index score: 45
Global rank: 130
Average price of 1 litre petrol: $1.30
Average price of 1 kg bread:$1.13
India’s financial capital Mumbai is the 2nd Indian city in the list.
“The Indian subcontinent may be structurally cheap, but an increasing number of locations are also becoming cheaper because of the impact of significant political or economic disruption,” notes the EIU study.
Chennai (India)
Index score: 46
Global rank: 129
Average price of 1 litre petrol: $1.19
Average price of 1 kg bread: $0.93
Chennai is ranked for the first time in this list. In India, inflation declined to a five and a half year low of (-) 0.39 per cent in January as manufactured and fuel items turned cheaper.
However, price of food items remained high.
New Delhi (India)
Index score: 48
Global rank: 128
Average price of 1 litre petrol: $1.14
Average price of 1 kg bread: $1.07
New Delhi, India’s capital city is ranked as the 6th cheapest city in the world.
The EIU report compares the cost of living in 133 cities using New York as a base city.
Tehran (Iran)
Index score: 49
Global rank: 126
Average price of 1 litre petrol: $1.14
Average price of 1 kg bread: $2.36
Capital of Iran, Tehran is ranked 7th in the cheapest cities’ list.
Damascus (Syria)
Index score: 49
Global rank: 126
Average price of 1 litre petrol: $0.78
Average price of 1 kg bread: $1.66
Stating that there is a considerable element of risk in some of world’s cheapest cities, the EIU study notes that cities like Karachi, Kathmandu, Algiers, Caracas and Tehran have faced economic, political and security challenges.
Kathmandu (Nepal)
Index score: 51
Global rank: 125
Average price of 1 litre petrol: $1.33
Average price of 1 kg bread: $1.69
Capital of Nepal, Kathmandu is ranked 9th cheapest city. Kathmandu has moved ahead by two ranks from last year.
Algiers (Algeria)
Index score: 52
Global rank: 124
Average price of 1 litre petrol: $0.28
Average price of 1 kg bread: $2.43
Algiers is the 10th cheapest city in the world. The city has moved ahead by two ranks from last year.
