London
is the most expensive city in the European Union for overseas workers to be
based, according to a new survey.
In
the latest cost of living survey by Mercer Human Resource Consulting, which
covers 144 cities and measures the comparative cost of more than 200 items in
each location, London was ranked 10th – up from 12th last year.
The
survey finds that London costs are pushed up by accommodation and transport
costs which are higher than in the rest of the EU.
However,
results show that the gap between the world’s most and least expensive cities
is narrowing. In the last year alone,
the difference has reduced by nearly 15 per cent.
The
survey aims to assist multinational companies in determining compensation
allowances for their expatriate workers.
Marie-Laurence
Sépède, senior researcher at Mercer, said: "Increasing globalisation means
that international companies are now producing more high-quality items locally,
reducing the need for imports. This particularly affects the living costs for
expatriates in developing countries who often pay a premium for imported food
and household goods from the West."
Other
findings include:
–
Hong Kong and Moscow are world’s most expensive cities; Johannesburg is
cheapest
–
London, Copenhagen and Milan are EU’s costliest cities
–
Australian and New Zealand cities become cheaper – yet continue to offer high
quality of life
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