Nobody imagined that Israel will before long, come in the ‘picture’ when it has to do with this huge tourism boost.
Nonetheless, Tel Aviv, Israel, is presently the most expensive city in the world to live in, as per a semiannual report by the Economist Intelligence Unit.
The Israeli city topped the EIU’s December 2021 worldwide cost of living index for the first time ever, climbing up from fifth place last year.
The EIU said that Tel Aviv ascended the rankings predominantly in light of the fact that, the Israeli currency, the shekel, had taken off, “floated against the dollar by Israel’s effective Covid-19 immunization rollout.”
Israel had one of the fastest Covid-19 immunization programs on the planet. As indicated by figures from Our World in Data, 62% of Israel’s populace were completely vaccinated as of last week.
Toward the beginning of November, the Israeli shekel was up 4% against the U.S. dollar year-to-date, as indicated by Reuters, but has since managed those additions.
Around a tenth of goods rose in cost in Tel Aviv, in the EIU’s latest research, which looked at the prices of over 200 products and services in 173 cities.
The EIU said that the inflation rate of the prices it followed had ascended by 3.5% year-on-year in local currency terms to September 2021, up from only 1.9% in 2020. It said this represented the fastest speed of inflation in its list in the course of recent years.
Supply chain issues, fluctuations in currency exchange rates and changes in consumer demand led to this rise in prices for commodities and other goods, the EIU said. Transport saw the biggest rise in cost, with the price of gasoline per liter up by 21% on average in 2021, according to the research.
Upasana Dutt, head of worldwide cost of living at the EIU, said that prices were expected to rise further across many cities over the coming year, as pay increased.
According to the research, it is also expecting central banks to raise interest rates, cautiously, to stem inflation.
The French capital-Paris tumbled down to second place in the rankings, joint with Singapore. Rome, Italy, saw a huge fall in the rankings, because of a sharp decrease in the cost of food and clothing.
The following is the full list of the most expensive cities in the world for 2021:
- Tel Aviv, Israel
- Paris, France
- Zurich, Switzerland
- Hong Kong, China
- New York, U.S.
- Geneva, Switzerland
- Copenhagen, Denmark
- Los Angeles, U.S.
- Osaka, Japan