Most expensive cities in the World: Mercer's Report
For over 2 decades, Mercer has been conducting the Cost of Living City Rankings and surveys the world using New York City and US dollar as its base city and currency. The survey compares 207 cities on the cost of a basket that includes food, transport accommodation and other items as a representation of goods and services consumed.
In India, Mumbai is ranked 74th in the list of most expensive global cities to live in for expats. It has climbed 66 places from last year due to rapid economic growth and inflation in the goods and services basket. Mumbai (74) ranked higher and more expensive than cities such as Dallas (77), Munich (87), Luxembourg (94), Frankfurt (98) and Vancouver (119). The survey exhibited that “(Mumbai) has witnessed higher inflation over the last one year compared to other metro cities, higher cost of fuel, transportation, increased prices of food items, home services and rentals, impacting the cost of living.”
Other Indian cities that follow Mumbai are New Delhi (132) and Chennai (157), which rose in the ranking by 25 and 28 spots, respectively. Bangalore (183) and Kolkata (193), the least expensive Indian cities, climbed in the ranking, as well.
In a company press release, Ruchika Pal, India Practice Leader, Global Mobility at Mercer shares “With a large number of Indian multinational organisations progressively expanding their footprint abroad, 85% of multinationals are expecting expatriate assignments to increase over the next two years to address business needs. Indian companies have been bullish on sending employees abroad and view this strategically for multiple reasons. Companies send critical and experienced talent for launching foreign investment, filling in for skill/managerial gap or for developing leaders and careers.”
Every year, this study is used by companies mainly to determine salary packages and allowances for expatriate employees posted across different overseas location.