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The 20 most expensive cities for Brits living abroad

Australian dollar banknotes and coins are pictured in Hong Kong. Photo: studioEAST/Getty Images
Australian dollar banknotes and coins are pictured in Hong Kong. Photo: studioEAST/Getty Images

The top 20 most expensive cities in the world for Britons to live in have been revealed, with Switzerland dominating the top five and a surprising inclusion at number one.

ECA International’s (ECA) latest Cost of Living report uses a basket of consumer goods including groceries, vegetables, meats and common household goods to rank the most expensive cities in the world. It does not factor in rent or other property costs.

As a result of the fallout from the Brexit referendum, London has fallen 81 places on the list. Turkmenistan’s capital Ashgabat is the world’s most expensive city.

The rest of the top five is made up of Swiss cities Geneva, Zurich, Basel and Bern.

The world’s 10 most expensive cities. Table: ECA
The world’s 10 most expensive cities. Table: ECA

Hong Kong and other countries in the Middle East which peg their currencies to the US dollar have also risen in the rankings Hong Kong is the sixth most expensive city to live in.

Dubai has reached the top 50 for the first time, in part because “the introduction of a five percent Value Added Tax in the UAE has pushed up the average price of goods and services in Dubai and Abu Dhabi,” explained Steven Kilfedder, ECA’s production manager.

Tel Aviv, Jerusalem, Busan, Shanghai, Yokohama, Copenhagen, Nagoya, Singapore, Osaka and Kinshasa make up positions 11 to 20.

The US saw four of its cities enter the top 100 most expensive around the world, as Miami, New Jersey, Baltimore and St Louis re-enter the rankings.

Kilfedder said that Brexit uncertainty was leading to a drop in the value of sterling, which could continue to make life more expensive for British expats: “The current political uncertainty is demonstrating the economic rollercoaster that the UK is facing right now and there is likely to be ups and downs as Brexit negotiations continue.”

The ECA report states that the value of the British pound compared to other currencies has made it more expensive for Britons to live abroad. That is in contrast with UK cities, where despite inflation the cost of living has reduced.

The change in London’s cost of living. Graph: ECA
The change in London’s cost of living. Graph: ECA

The fall in the pound conversely means that visitors and workers to the UK, from the UAE and America, will benefit from cheaper goods.

Kilfedder explained: “The cost of living in the UK has dropped significantly for overseas workers and visitors since the referendum along with the value of the pound. With the UK’s scheduled leave date fast approaching, all that can be certain is there will be more fluctuation in inflation and exchange rates as the nature of future relationships becomes clearer.

“This all has an effect on exchange rates, which makes a huge impact on how expensive Brits will find working and living abroad. Depending on the outcome of the negotiations, UK cities could continue to fall in the rankings or start moving back up, depending on how the exchange rate moves.”

Price comparison for the cost of living in four major cities. Data: ECA
Price comparison for the cost of living in four major cities. Data: ECA

There is some positive news for a some Britons abroad, however. Popular retirement and emigration destinations Australia and New Zealand have both seen their currencies devalue in relation to the British pound. The cost of a litre in petrol is 96p ($1.21) in Sydney, and would cost £1.42 in London.