Tel Aviv is considered the world's most expensive city to live in thanks to the rapid rise in inflation that has pushed up the cost of a wide range of goods and services across the world in the wake of the coronaviruses epidemic.
According to the authoritative ranking system by the Economist Intelligence Unit EIU, the Israeli city climbed five spots in the past 12 months to take the unwanted title away from Paris, Hong Kong and Zurich. The French capital was joint second with Singapore, while Zurich and Hong Kong made up the rest of the top five. London rose three places to 17 in the annual ranking, with Sydney up one to 14 and Melbourne up two to 16.
Tel Aviv's surge up the table was due to the strength of the national currency, the shekel, against the dollar, as well as increases in prices for transport and groceries.
It was ranked the second most expensive city for alcohol and transportation, fifth for personal care and sixth for recreation. It made the top third in all 10 of the major spending categories of the EIU, with its index score up by 5 points since last year.
The shake up of the rankings was a result of the dislocation of the global economy as it recovers from the stop-start impact of the Pandemic-enforced lockdowns this year.
The price of energy and food has rocketed in some countries due to restrictions on trade, labour shortages and ongoing supply chain bottlenecks. The average cost of a litre of unleaded petrol has gone up by 21%, according to the survey.
In August and September, the data on 50,000 goods and services in 173 cities was collected as prices for freight and commodities went up. The fastest inflation rate recorded in the past five years was at 3.5% in local currency terms. The survey does not include property prices, but rental costs are not included in the survey.
Upasana Dutt, head of worldwide cost of living at the EIU, said: We can clearly see the impact of this year's index, with the rise in petrol prices particularly stark, while central banks are expected to raise interest rates cautiously, reducing inflation.
There were forty new cities added to the rankings this year. The Scottish capital Edinburgh was the highest new entry on the chart, coming in at 27th on a par with cities with a high cost of living such as Auckland and Minneapolis. Stuttgart and San Diego also entered in the Top 50.
Rome saw its biggest drop as it fell 16 places to 48, with a decline in the cost of groceries and clothing. Bangkok and Lima were the second-biggest movers down the rankings, with significant declines in all categories.
Tehran was the biggest climber after it leapt 50 places to 29th thanks to continued supply-side constraints, goods shortages and rising import prices after the US sanctions were imposed.
The average inflation figure does not include four cities with exceptionally high rates: Tehran, Damascus, Buenos Aires and Caracas.
Damascus was ranked the world's cheapest city to live in, followed by Tripoli in Libya and Tashkent, the capital of Uzbekistan.