According to new data from Mercer’s 2022 Cost of Living City Ranking, Hong Kong is the most expensive to live in, followed by Zurich and Geneva. At 227, Ankara ranked as the least expensive city to live in. The report notes that the conflict in Ukraine, high inflation and currency volatility, plus the aftermath of the pandemic, are all factors affecting international economic balances and the cost of living across the world.
With the return of high inflation across the globe, employees are concerned about their purchasing power, resulting in salary increase expectations. Companies, on the other hand, need to strike a delicate balance between controlling their costs while struggling to attract and retain talent. Mercer’s Cost of Living Survey aims to provide employers with current, extensive and reliable data to help them navigate compensation strategies for their mobile employees.
Top 10 most expensive cities
- Hong Kong
- Tel Aviv
- New York City
Cost of living is one of the key factors of city attractiveness for international talent, business and investments. There’s competition among cities, especially in times of inflation.
According to Mercer, a city’s attractiveness is based on a number of factors, and while the cost of life is clearly an important one, other components include the affordability of housing, the quality of life based on a range of factors such as safety, sanitation, eco-friendliness or education standards, as well as governance and taxation considerations.
Mercer’s ranking encompasses over 400 cities around the world. Carried out twice per year, the survey is designed to help multinational companies and governments around the world determine compensation strategies for their expatriate employees.
10 least expensive cities (rank 218 to 227)
In addition to evaluating more than 200 goods and services, Mercer’s Cost of Living Survey highlights essential factors, such as currency fluctuations, cost inflation and accommodation price instability, to determine the cost of packages for internationally mobile employees. Mercer regularly updates its Cost of Living Research, adjusting it to the international market developments.