Tel Aviv ranks first in world's most expensive city 2021

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• Dec 2, 2021 | moderator

Israel: Tel Aviv, Israel, is presently the world's most expensive city to live in, according to a semiannual report by the Economist Intelligence Unit.

After climbing up to the fifth rank in 2020, Tel Aviv secured the first rank in 2021. The city exceeded Paris and Singapore in the second position. 

However, Rome and Italy saw the biggest fall in the ranking this year. 

As per the report, this rise in the ranking indicates the strength of Israeli currency. Israeli currency, the shekel, when translated into dollars, increased its rates.

Rates in shekel terms grew around 1.6 %, led by groceries, household goods, automobiles and fuel. The city was the second most costly place to purchase liquor.

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CNBC stated that Isreal had performed well against the pandemic, with 62% of the population wholly vaccinated as of Monday.

The Economist Intelligence Unit (The EIU), which traces the value of living in 173 cities across the world, discovered that the costs of assets and services globally increased by 3.5%, related to a 1.9% rise in 2020, presenting it the fastest-paced inflation over the past five years.

"Over the coming year, we anticipate to see the value of living increase further in various cities as salaries grow in numerous sectors," stated Upasana Dutt, head of a global cost of living at the Economist Intelligence Unit.

"But, we are further expecting central banks to raise interest rates, guardedly, to stem inflation. So the price hikes should begin to moderate from this year's level," she added.