Cost of Living City Ranking 2022 

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    Mercer’s 2022 Cost of Living City Ranking reveals the most expensive cities for international employees. How can employers help move mobile employees ahead of inflation?

    Amplified by the global health crisis and the conflict in Ukraine, skyrocketing inflation and currency volatility are affecting international economic balances and the cost of living for each of us. For organizations with globally distributed workforces, assessing and managing the impact on their employees’ financial wellbeing may be particularly complex.

    Mercer’s Cost of Living Survey provides employers with current, extensive and reliable data to help them navigate compensation strategies for their mobile employees in the unpredictable global markets.

    What are the most expensive cities in the world for international employees?

    Hong Kong tops Mercer’s 2022 Cost of Living City Ranking, based on our latest research, followed by Zurich and Geneva, while Ankara closes the ranking at the 227th spot.

    Check out the full ranking below and visit our Newsroom for more local insights in the press releases from across geographies.

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    This map presents the most and least expensive cities in the world for international employees. The top 10 most expensive cities are, in order from rank 1 to rank 10: Hong Kong, Zurich, Geneva, Basel, Bern, Tel Aviv, New York City, Singapore, Tokyo, Beijing. The 10 least expensive cities are, in order from rank 218 to 227: Algiers, Almaty, Tunis, Tashkent, Istanbul, Karachi, Islamabad, Dushanbe, Bishkek, Ankara.

    Rank City Location

    1

    Hong Kong

    Hong Kong SAR

    2

    Zurich

    Switzerland

    3

    Geneva

    Switzerland

    4

    Basel

    Switzerland

    5

    Bern

    Switzerland

    6

    Tel Aviv

    Israel

    7

    New York City, NY

    United States

    8

    Singapore

    Singapore

    9

    Tokyo

    Japan

    10

    Beijing

    China

    11

    Copenhagen

    Denmark

    12

    Shanghai

    China

    13

    Shenzhen

    China

    14

    Seoul

    South Korea

    15

    London

    United Kingdom

    16

    Nassau

    Bahamas

    17

    Los Angeles, CA

    United States

    18

    Guangzhou

    China

    19

    San Francisco, CA

    United States

    20

    Honolulu, HI

    United States

    21

    Vienna

    Austria

    22

    Qingdao

    China

    23

    Bangui

    Central African Republic

    24

    Libreville

    Gabon

    25

    Amsterdam

    Netherlands

    26

    Nanjing

    China

    27

    Oslo

    Norway

    28

    Taipei

    Taiwan

    29

    Washington, DC

    United States

    30

    Boston, MA

    United States

    31

    Dubai

    United Arab Emirates

    32

    Miami, FL

    United States

    33

    Munich

    Germany

    34

    Busan

    South Korea

    35

    Paris

    France

    36

    Chicago, IL

    United States

    37

    Osaka

    Japan

    38

    Victoria

    Seychelles

    39

    Brussels

    Belgium

    40

    Shenyang

    China

    41

    Djibouti

    Djibouti

    42

    Atlanta, GA

    United States

    43

    Helsinki

    Finland

    44

    Chengdu

    China

    45

    Seattle, WA

    United States

    46

    Berlin

    Germany

    47

    The Hague

    Netherlands

    48

    Milan

    Italy

    49

    Dublin

    Ireland

    50

    Yokohama

    Japan

    51

    Nagoya

    Japan

    52

    Luxembourg

    Luxembourg

    53

    Kinshasa

    The Democratic Republic Of The Congo

    54

    Noumea

    New Caledonia

    55

    Lagos

    Nigeria

    56

    Chongqing

    China

    57

    Rome

    Italy

    58

    Sydney

    Australia

    59

    Hamburg

    Germany

    60

    Prague

    Czech Republic

    61

    Abu Dhabi

    United Arab Emirates

    62

    Frankfurt

    Germany

    63

    Xian

    China

    64

    Luanda

    Angola

    65

    Dakar

    Senegal

    66

    Edinburgh

    United Kingdom

    67

    Melbourne

    Australia

    68

    Abidjan

    Côte D'Ivoire

    69

    Suzhou

    China

    70

    Philadelphia, PA

    United States

    71

    Stuttgart

    Germany

    72

    San Juan

    Puerto Rico

    73

    Wuhan

    China

    74

    Brazzaville

    The Republic Of Congo

    75

    Dallas, TX

    United States

    76

    Conakry

    Guinea Republic

    77

    Douala

    Cameroon

    78

    Barcelona

    Spain

    79

    Riga

    Latvia

    80

    N'Djamena

    Chad

    81

    Dusseldorf

    Germany

    82

    Pittsburgh, PA

    United States

    83

    Minneapolis, MN

    United States

    84

    Brisbane

    Australia

    85

    Houston, TX

    United States

    86

    Glasgow

    United Kingdom

    87

    Stockholm

    Sweden

    88

    Pointe-A-Pitre

    Guadeloupe (France)

    89

    Toronto

    Canada

    90

    Madrid

    Spain

    91

    Portland, OR

    United States

    92

    Taichung

    Taiwan

    93

    Aberdeen

    United Kingdom

    94

    Birmingham

    United Kingdom

    95

    Auckland

    New Zealand

    96

    Lyon

    France

    97

    Perth

    Australia

    98

    Dhaka

    Bangladesh

    99

    Leipzig

    Germany

    100

    Yaounde

    Cameroon

    101

    St. Louis, MO

    United States

    102

    Adelaide

    Australia

    103

    Riyadh

    Saudi Arabia

    104

    Canberra

    Australia

    105

    Bratislava

    Slovakia

    106

    Bangkok

    Thailand

    107

    Detroit, MI

    United States

    108

    Vancouver

    Canada

    109

    Lisbon

    Portugal

    110

    Toulouse

    France

    111

    Jeddah

    Saudi Arabia

    112

    Cleveland, OH

    United States

    113

    Kaohsiung

    Taiwan

    114

    Buenos Aires

    Argentina

    115

    Amman

    Jordan

    116

    Nuremberg

    Germany

    117

    Manama

    Bahrain

    118

    Bamako

    Mali

    119

    Muscat

    Oman

    120

    Wellington

    New Zealand

    121

    Belfast

    United Kingdom

    122

    Manila

    Philippines

    123

    Montevideo

    Uruguay

    124

    Lome

    Togo

    125

    Montreal

    Canada

    126

    Athens

    Greece

    127

    Mumbai

    India

    128

    Cotonou

    Benin

    129

    Harare

    Zimbabwe

    130

    Santiago

    Chile

    131

    Kuwait City

    Kuwait

    132

    Ottawa

    Canada

    133

    Doha

    Qatar

    134

    Phnom Penh

    Cambodia

    135

    Port Of Spain

    Trinidad & Tobago

    136

    Guatemala City

    Guatemala

    137

    Ouagadougou

    Burkina Faso

    138

    Niamey

    Niger

    139

    San Jose

    Costa Rica

    140

    Tallinn

    Estonia

    141

    Calgary

    Canada

    142

    Havana

    Cuba

    143

    Casablanca

    Morocco

    144

    Bujumbura

    Burundi

    145

    Ljubljana

    Slovenia

    146

    Accra

    Ghana

    147

    Abuja

    Nigeria

    148

    Vilnius

    Lithuania

    149

    Mexico City

    Mexico

    150

    Hanoi

    Vietnam

    151

    Jakarta

    Indonesia

    152

    Panama City

    Panama

    153

    Kingston

    Jamaica

    154

    Cairo

    Egypt

    155

    New Delhi

    India

    156

    Quito

    Ecuador

    157

    Vientiane

    Lao People'S Democratic Republic

    158

    Bucharest

    Romania

    159

    Zagreb

    Croatia

    160

    Nairobi

    Kenya

    161

    Tirana

    Albania

    162

    Rabat

    Morocco

    163

    Ho Chi Minh City

    Vietnam

    164

    Dar Es Salaam

    Tanzania

    165

    Limassol

    Cyprus

    166

    Kampala

    Uganda

    167

    Maputo

    Mozambique

    168

    Sao Paulo

    Brazil

    169

    Nouakchott

    Mauritania

    170

    Sofia

    Bulgaria

    171

    Port-Au-Prince

    Haiti

    172

    Lima

    Peru

    173

    Santo Domingo

    Dominican Republic

    174

    Warsaw

    Poland

    175

    Belgrade

    Serbia

    176

    Rio De Janeiro

    Brazil

    177

    Chennai

    India

    178

    Bengaluru

    India

    179

    Bandar Seri Begawan

    Brunei

    180

    Budapest

    Hungary

    181

    Kuala Lumpur

    Malaysia

    182

    San Salvador

    El Salvador

    183

    Colombo

    Sri Lanka

    184

    Blantyre

    Malawi

    185

    Monterrey

    Mexico

    186

    Baku

    Azerbaijan

    187

    Wroclaw

    Poland

    188

    Antananarivo

    Madagascar

    189

    Tegucigalpa

    Honduras

    190

    Krakow

    Poland

    191

    Port Louis

    Mauritius

    192

    Hyderabad

    India

    193

    Johannesburg

    South Africa

    194

    Cape Town

    South Africa

    195

    Asuncion

    Paraguay

    196

    La Paz

    Bolivia

    197

    Yerevan

    Armenia

    198

    Yangon

    Myanmar

    199

    Lusaka

    Zambia

    200

    Brasilia

    Brazil

    201

    Pune

    India

    202

    Banjul

    Gambia

    203

    Kolkata

    India

    204

    Minsk

    Belarus

    205

    Bogota

    Colombia

    206

    Skopje

    Macedonia

    207

    Manaus

    Brazil

    208

    Kigali

    Rwanda

    209

    Sarajevo

    Bosnia-Herzegovina

    210

    Belo Horizonte

    Brazil

    211

    Johor Bahru

    Malaysia

    212

    Managua

    Nicaragua

    213

    Windhoek

    Namibia

    214

    Addis Ababa

    Ethiopia

    215

    Gaborone

    Botswana

    216

    Durban

    South Africa

    217

    Tbilisi

    Georgia

    218

    Algiers

    Algeria

    219

    Almaty

    Kazakhstan

    220

    Tunis

    Tunisia

    221

    Tashkent

    Uzbekistan

    222

    Istanbul

    Türkiye

    223

    Karachi

    Pakistan

    224

    Islamabad

    Pakistan

    225

    Dushanbe

    Tajikistan

    226

    Bishkek

    Kyrgyzstan

    227

    Ankara

    Türkiye

    The return of high inflation

    …and what it means for purchasing power across markets.

    With the recent return of high inflation across the globe, employees are increasingly concerned about their purchasing power, resulting in salary increase expectations. Companies, on the other hand, need to strike a delicate balance between controlling their costs while struggling to attract and retain talent.

    Addressing these issues with regard to internationally mobile employees is a complex and significant challenge for multinational employers.

    They may adopt various strategies to protect the purchasing power of their international workforce in times of market volatility, but it’s important that they understand the advantages and disadvantages of the different approaches. The consequences of their decisions will impact both the business and the financial wellbeing of their employees. 

    Mercer has created a practical guide that can help you understand and navigate this complexity.
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    Gasoline: The chart shows the movement of gasoline prices across selected locations. By far, the highest price increase occurred in Istanbul, followed by Los Angeles, Barcelona, New York City and Berlin. No price movement occurred for Dakar. Gasoline price decrease did not occur in any of the locations. The data refer to one liter of gasoline, unleaded 95 octane.
    Cooking oil: The chart shows the movement of cooking oil prices across selected locations. The highest price increase occurred in Barcelona, followed by Istanbul, Dublin, Beijing and Warsaw. No price movement occurred in Berlin, Hong Kong, London, Paris and Tokyo. Price decrease occurred in Mumbai, Seoul, Dubai, Toronto and Johannesburg. The data refer to cooking oil (1 lt / 33.8 oz / 920 gr).
    Beer: The chart shows the movement of beer prices across selected locations. By far, the highest price increase occurred in Istanbul. No price movement occurred in 9 out of the 25 cities. The most significant price decrease occurred in Warsaw, followed by Berlin, Nairobi, Toronto and Beijing. The data refer to international branded beer (0.33l / 11.2oz).
    Bread: The chart shows the movement of bread prices across selected locations. The highest price increase occurred in Istanbul, Mexico City, São Paulo, Dublin and Warsaw. No price movement occurred in Beijing, Berlin, Dakar, Hong Kong, Paris, Seoul and Sydney. The most significant price decrease occurred in New York City, Los Angeles, Dubai, Johannesburg and Mumbai. The data refer to white sliced toast bread (1000 gr / 35.3 oz).

    Where cost of living meets quality 

    Cost of living is one of the key factors of city attractiveness for international talent, business and investments, but what do we learn when we also take quality of living into account?

    Competition among cities is fierce, especially in times of galloping inflation hitting the majority of locations around the world. Which cities are currently best positioned to attract and retain top talent and international businesses?

    A city’s attractiveness is based on a number of factors, and while the cost of life is clearly an important one, other components include the affordability of housing, the quality of life based on a range of factors such as safety, sanitation, eco-friendliness or education standards, as well as governance and taxation considerations.

    The infographic on the right shows the results of our analysis that takes into account a combination of selected factors, drawing on Mercer’s latest cost of living and quality of living research.

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    This infographic shows the correlation between the Cost of Living Index and Quality of Living Index for selected global cities, as well as their score in the Eco-City Index. Some of the locations with the lowest cost of living and highest quality of living are Vancouver, Toronto, Stockholm, Lisbon and Frankfurt. Hong Kong has the highest cost of living but lower quality of living than many other locations. The general trend shows that the locations with higher cost of living and quality of living also rank higher for eco-friendliness.

    What makes a city attractive for international talent?

    How can you ensure your mobile employees stay happy and efficient in the assignment location?

    In a recent webinar, our consultants shared highlights of Mercer’s latest global cost of living and quality of living research, ​and what it means for organizations and cities looking to attract and retain international talent.

    Mercer’s Cost of Living data and Research

    Mercer’s annual Cost of Living city ranking is based on our Cost of Living data research - one of the most recognized and extensive surveys of its kind, encompassing over 400 cities around the world. Carried out twice per year, the survey is designed to help multinational companies and governments around the world determine compensation strategies for their expatriate employees.

    How we calculate the cost of living index

    In addition to evaluating more than 200 goods and services, Mercer’s Cost of Living Survey highlights essential factors — such as currency fluctuations, cost inflation and accommodation price instability — in determining the cost of packages for internationally mobile employees.

    To help ensure the highest relevance of the data we provide, Mercer continuously keeps its Cost of Living Research methodology abreast with the latest trends, adjusting it to the international market developments and international assignees’ spending patterns.

    Mercer inflation definition

    Inflation is generally defined as the measure of price movements from time T to time T+1, using exactly the same specification of item in terms of packaging size and characteristics.

    Therefore, for the purpose of Mercer’s Cost of Living survey, Mercer’s inflation quoted figure is designed to provide an indication of how the index has moved in the last six or 12 months in local currency terms, regardless of the currency fluctuations between the home and the host location.

    The overall Cost of Living Index reflects the prices of over 200 items from the following categories:
    • Housing
    • Transportation
    • Utilities
    • Food
    • Domestic Supplies
    • Home Services
    • Personal care
    • Clothing and footware
    • Recreation and entertainment
    • Alcohol and tobacco

    Meet our mobility consultants

    Slagin Parakatil, Global Product Leader

    Yvonne Traber, Global and Europe Mobility Leader

    Tracey Ma, Asia Mobility Leader

    Amalia Suaste, Latin America Mobility Leader

    Vladimir Vrzhovski, Middle East and Africa Mobility Leader

    Taryn Kramer, North America Mobility Leader

    Karla Cost, Pacific Mobility Leader

    Kate Fitzpatrick, UK Mobility Leader

    Contributors
    Slagin Parakatil
    Yvonne Traber
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