Journalists told how Russia's war against Ukraine affected the list of the most expensive cities in the world

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Journalists told how Russia's war against Ukraine affected the list of the most expensive cities in the world

Experts from the EIU said that the world is experiencing a record increase in inflation. In 2023, the situation may improve if the war between Ukraine and the Russian Federation does not “escalate”.

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The Economist Intelligence Unit's (EIU) “List of Most Expensive Cities to Live in” has changed a lot compared to 2021 due to Russia's war against Ukraine. The Washington Post writes about this.

The publication writes that in connection with the war, which was started by Russian President Vladimir Putin, Moscow experienced the sharpest jumps in the rating among all the included cities. So, Moscow moved from 72nd place to 37th. On the other hand, many cities in Western Europe have become less expensive due to the weakening currency and economy, even as gas and electricity prices have risen sharply.

It is reported that New York and Singapore are recognized as the most expensive cities. Tel Aviv is in third place, while Los Angeles and Hong Kong are in fourth place.

According to journalists, economists partially attribute the global cost of living crisis to the war in Ukraine, as well as to the ongoing restrictions due to COVID-19 in China, and other consequences of the pandemic. In addition, supply chain problems, climate change and the worsening impacts of inflation are also cited as reasons.

Research lead Upasana Dutt said the war in Ukraine is one of two key factors, along with the pandemic.

“What we're noticing is supply chain bottlenecks, and that's only happened because of the war,” she said.

As pandemic-related restrictions ease, rising demand, Dutt said for goods faced constant blockages in the supply chain, which led to high inflation. Western sanctions against Russia have exacerbated the impact on the supply of goods everywhere.

The publication writes that the report documents this impact on other European cities, where attempts to reduce dependence on Russian energy have led to a 29 percent increase in gas and electricity prices.

According to the EIU, utility bills rose by an average of 11% worldwide, and car prices rose by an average of 9.5% in local currency. The report expects some relief in 2023 if commodity prices “fall sharply”, assuming the war in Ukraine does not escalate.

EIU's “Most Expensive Cities to Live In” ranking

The Rankingis compiled annually by the London-based Economist Intelligence Unit (an analytical arm of The Economist Group media company). 2022 compares the cost of living in 172 cities, analyzing prices for more than 200 goods and services, including rent, utilities, household goods and groceries. The rating recorded an 8.1 percent increase in inflation worldwide over the past year. This is the highest number since the EIU began conducting research nearly two decades ago.