GENEVA: Oslo and London are the world's most expensive cities, while people residing in Zurich and Geneva have the highest buying power, according to a report by Switzerland's bank UBS.
The prices and earnings report by the bank released Wednesday compares the prices of 122 domestic goods and services in 71 cities of all the continents. The goods include food, drink, clothing, etc., while services are like medical services, entertainment, etc.
According to the report, the most expensive cities in the world are all in Europe and the goods and services cost the least in Asian cities like Mumbai, New Delhi and Kuala Lumpur and Buenos Aires.
Oslo retains the top position after it was adjudged the costliest city in 2005. London rose three places to reach the second slot. The other cities in the top five most expensive are Copenhagen, Zurich and Tokyo. New York is at the seventh place.
If housing costs are included, London and New York become the most expensive cities.
In terms of wages, North American workers earn the highest wages, followed by those in Western Europe. European earnings tend to be lower because of the higher taxes prevailing there and social security contributions. Total pay packets were largest in Copenhagen, Oslo and Zurich, but these cities lose out when tax is taken into account.
Kuala Lumpur was the cheapest city, followed by Mumbai, Buenos Aires and Delhi. Delhi was also among the bottom five cities in both the wages and purchasing power rankings.
The report said Shanghai and Beijing in China and some of the major cities in eastern Europe are among the least expensive.
Asian cities have the longest working hours, with Seoul workers averaging 50.2 hours a week. Asian workers also had the fewest vacation days, 12 per year, compared to 20 globally.
Based on a different yardstick of how long a worker is required to work to earn a Big Mac hamburger, Tokyo heads the list with just 10 minutes. In comparison, a worker in Bogota has to slog for 97 minutes, the longest of any of the 70 cities, UBS said.
