Rising prices push London up 'Cost of Living' ranking

• London leaps five places to 15th most expensive city in the world


• Cost of a loaf of bread tripled over five years


• However – a meal for two is cheaper than other major European cities




Rising costs and a stronger pound have made London the 15th most expensive city in the world–up five places from last year–according to a new report published by the Economist Intelligence Unit (EIU), a world leader in country intelligence.


The Worldwide Cost of Living Report, a twice-yearly survey which looks at over 400 individual prices in 140 cities across 93 countries–ranked Tokyo in Japan as the most costly city, followed by Oslo (Norway), Osaka (Japan) and Paris (France). Karachi in Pakistan was revealed as the least expensive city to live in, with Bucharest in Romania the cheapest in Europe.



London is at its highest position since before the global economic downturn in 2008, when it sat in 7th place. While consumers’ wallets have been hit by rising commodity prices and VAT, the weaker economic situation on the continent has also pushed the cost of living up compared to Euro-zone cities. Manchester, ranked 53rd in the survey, is up from 61st place last year but remains over 20% cheaper than London.



The study reveals that the price for a loaf of bread in the UK capital has almost tripled in the last five years, with the supermarket price of a 1kg white loaf at 55 pence in 2006, and to £1.44 now.



So-called "sin-taxes" have also affected the cost of living. The supermarket price of a litre of local beer has risen nearly 50% from £1.28 to £1.90 in the last five years. (The French have been hit even harder in this area, with the price of beer jumping 71% to €3.00 (£2.63) per litre.) Cigarette prices in London also rose 25% to £6.58 for a packet of 20.



However, the report shows that, among major European cities, London offers value for money in some areas. Those who were able to get tickets for next years Olympics will be heartened to see that eating out in the capital is accessible, with a meal for two costing £68.00. This compares to £183.86 in Madrid, £144.46 in Rome, and £140.86 in Paris. In this category Moscow has seen a huge jump, with a meal costing £143.49 now compared to £49.15 five years ago–an increase of almost 300%.

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