Have you ever wondered whether life would be cheaper if you lived somewhere else? We've used The Worldwide Cost of Living Report 2018 by the Economist Intelligence Unit (EIU) to bring you the top 10 cheapest, and most expensive, cities to live in in the world. Comparing more than 400 individual prices across 160 goods and services, in more than 130 cities all over the world, we’ve looked at the cost in US dollars of a 1kg loaf of bread, a bottle of table wine, 20 branded cigarettes, and 1 litre of unleaded petrol, to bring you the definitive ranking...

In the city known for its bustling streets filled with tuk-tuks and markets, it’s cheap to be a local. Savvy shopkeepers often have a “tourist” price and an “Indian” price, meaning that locals enjoy low prices on food, clothing and household goods while tourists are happy to pay more. A 1kg loaf of bread costs on average $1.07 (£0.84); 20 branded cigarettes cost $5.11 (£4.03); and a litre of unleaded petrol costs $1.07 (£0.84). The outlier is alcohol, coming in at a steep $19.03 (£15.01) per bottle of table wine, due to India’s high taxes on alcohol.

As many young, bright graduates leave Romania for big companies in more affluent nations and birth rates remain sluggish, Romania’s population has fallen from 23.5 million in 1989 to 19.5 million today. Its capital city Bucharest has some of the lowest alcohol prices around, with a bottle of table wine costing a cheap $4.98 (£3.93); meanwhile, a loaf of bread costs $2.05 (£1.62), 20 cigarettes cost $4.31 (£3.40) and a litre of unleaded petrol comes in at $1.28 (£1.01).

India’s fifth largest city is also its third-most popular with expats, drawn to its affordable real estate and fast-growing economy. As you’d expect given the alcohol tax, alcohol isn’t cheap at $11.24 (£8.86) per bottle of table wine, while a loaf of bread will cost you $1.20 (£0.95), 20 cigarettes are $4.59 (£0.47) and a litre of petrol costs $1.11 (£0.88).

Oil is the backbone of Algeria’s economy, accounting for around 30% of GDP according to the CIA World Factbook – so it’s unsurprising that in its capital, petrol costs a bargain $0.32 (£0.25) per litre. The country’s dependence on oil has hindered development and pushed down the cost of living. In Algiers, a loaf of bread costs $2.07 (£1.63), 20 cigarettes cost on average $3.45 (£2.72) and a bottle of table wine is on average $10.20 (£8.04).

Pakistan’s largest city, located on the south coast, is a melting pot of cultures with migrants making up an estimated 90% of its population. In Karachi, cigarettes come to $1.68 (£1.32) for 20, bread costs $1.70 (£1.34), and petrol works out as $0.68 (£0.54) per litre. However, alcohol is expensive at $14.14 per bottle of wine: 96.5% of the population is Muslim and legally prohibited from drinking alcohol, while for the small proportion of non-Muslims who can drink, high taxes make the hard stuff more expensive.

Bengaluru (formerly Bangalore) has transformed in the past two decades, from a small and sleepy city nicknamed “Pensioner’s Paradise”, to a magnet for tech industries and startups, earning it the new nickname of “India’s Silicon Valley”. Despite rapid economic growth, Bengaluru remains cheap due to low wages and subsidies on staple items. Bread costs $1.33 (£1.05), a bottle of wine is $16.42 (£12.95), 20 cigarettes are $5.11 (£4.03), and a litre of petrol is $1.15 (£0.91).

The population of Nigeria’s largest city has ballooned in recent years, though development is unequal – many people live in slums while luxury apartment blocks are springing up alongside them. In Lagos, the average 1kg loaf of bread costs just $1.16 (£0.91); a bottle of table wine is $6.79 (£5.35); 20 cigarettes cost $1.26 (£0.99) and petrol is just $0.40 (£0.32) a litre. 

Rich city, poor city: where prosperity and poverty are neighbours

Almaty, the largest city in Kazakhstan, saw prices tumble after the central bank introduced a free-floating exchange regime in 2015, which meant the country would not intervene in the currency’s price, causing the Tenge (Kazakhstan’s currency) to drop in value. Coupled with deflation, this has kept prices low: cigarettes are especially cheap at $1.07 (£0.84) for 20, while petrol costs just over 50 cents (£0.39) a litre, table wine is $7.45 (£5.88) per bottle and a loaf of bread costs just over a dollar.

Oil-rich Venezuela is home to the world’s cheapest petrol, which is so heavily subsidised that it’s effectively free. Don’t be fooled into thinking its low prices are a good thing – this country is struggling under the weight of a three-year depression, hyperinflation and political crisis which have brought prices down. In its capital city, Caracas, a loaf of bread costs $2.25 (£1.77), a bottle of wine costs $9.52 (£7.51) and cigarettes cost just $0.69 (£0.54) for 20.

The city with the lowest cost of living is Damascus, Syria’s second-largest metropolis where more than 80% of people live below the poverty line. The enduring war has created widespread inequality, slowed development and pushed more than half of the population into unemployment, and despite low prices, many people cannot afford basic needs. Bread costs 60 cents (£0.47); a bottle of wine is $3.35 (£2.64), 20 cigarettes come to $1.55 (£1.22), and a litre of petrol is $0.50 (£0.39).

Turning to the cities with the highest cost of living, Australia's Emerald City bags the 10th spot, with a pack of cigarettes costing a staggering $23.89 (£18.84), a bottle of wine $20.49 (£16.16), bread $3.99 (£3.15) and petrol a more reasonable $0.98 (£0.77) per litre. Increased immigration has led to rising demand for housing, meaning that cost of living has skyrocketed in recent years.

Israelis aren’t happy about the hiking cost of living in their country: in 2011, many took to the streets of Tel Aviv in a “cottage cheese protest” to show their upset about the rising price of dairy products, yet eight years later the situation doesn’t seem to have improved. A loaf of bread costs an extortionate $5.10 (£4.02), while wine comes in at $28.77 (£22.69) a bottle, 20 cigarettes is $9.03 (£7.12), and petrol is $1.68 (£1.32) per litre.

World's most and least polluted countries

The capital of the country known for its hygge (i.e. enjoying the cosiness inside during winter months) and happiness, with Denmark being ranked the second happiest country in the world by the World Happiness Report 2019. But you might be surprised at how expensive Copenhagen is: a loaf of bread costs $3.87 (£3.05), a bottle of wine is $13.28 (£10.47), 20 cigarettes cost $7.03 (£5.54) and a litre of petrol $1.67 (£1.32). Yet with Denmark’s high minimum wage of $19 (£14.97) an hour and progressive, redistributive taxation, most locals can afford this pricey city.

Getting your daily bread in Seoul, South Korea’s densely populated capital, won’t come cheap: a loaf costs a jaw-dropping $15.59 (£12.29). According to the EIU report, grocery shopping in Seoul is almost 50% more expensive than in New York, as several years of food price inflation combined with sky-high commercial rent and high farming expenses hike up prices. Wine costs $27.02 (£21.31) a bottle, cigarettes cost $3.94 (£3.11) for 20 and petrol costs $1.34 (£1.06) per litre.

A country known for its chocolate, cheese, ski resorts and watches, Switzerland has a certain air of luxury – so it might come as no surprise that prices in Geneva, its second largest city, are among the highest in the world. You can expect to pay $6.45 (£5.09) for a loaf of bread, $8.37 (£6.60) for a bottle of wine, $9.48 (£7.48) for 20 cigarettes and $1.55 (£1.22) for a litre of petrol.

In Norway, prices of goods and services are expensive due to high VAT (25%) and high labour costs – yet higher wages mean people can afford to pay the price. Plus a world leading social welfare system means people spend less on basic needs. In Oslo, Norway’s capital, a loaf of bread will set you back $5.52 (£4.35), wine costs $13.70 (£10.80) a bottle, 20 cigarettes are a steep $13.50 (£10.65), and petrol is $2.02 (£1.59) per litre.

In Hong Kong, taxes are famously low – largely because the government makes a fortune from sky-high housing prices. In a Demographia International Housing Affordability Survey, Hong Kong was ranked the most expensive housing market worldwide, with housing prices being 18.1 times higher than the gross median household income. Housing isn't the only thing that's expensive: a loaf of bread costs $4.16 (£3.28), wine costs $16.16 (£12.74), cigarettes cost $7.29 (£5.75), and a litre of petrol is a whopping $7.29 (£5.75).

 

Tourists in Switzerland might be shocked by its absurdly high prices, yet its minuscule rates of income tax coupled with high salaries make it affordable for many residents. Located in northern Switzerland, Zurich is its most expensive city and the third most expensive globally. A loaf of bread costs $7.29 (£5.75), a bottle of wine costs $15.89 (£12.53), 20 cigarettes cost $9.48 (£7.48), and a litre of petrol costs $1.68 (£1.32).

The only Eurozone city in the top 10, Parisians pay a premium for housing, entertainment, groceries and clothing. You’ll pay on average $11.90 (£9.38) for a bottle of table wine and $9.29 (£7.33) for a pack of cigarettes in the French capital. Meanwhile, a loaf of bread comes in at a pricey $6.33 (£4.99), and petrol is $1.77 (£1.40) per litre.

The world’s most expensive city to live in is Singapore, a ranking it’s held onto since 2014. Three interconnected factors contribute to the high cost of living: inflation, housing affordability and immigration. In Singapore, you’ll pay: $3.71 (£2.93) for a loaf of bread, $23.68 (£18.67) for a bottle of wine, $9.66 (£7.62) for 20 cigarettes, and $1.56 (£1.23) for a litre of petrol.

10 cities that used to be rich but are now poor