Expensive is a relative term; you can further examine it by looking at what was considered expensive back in the day and comparing that standard to what is considered expensive today. The living cost has gone through the roof due to global inflation that has been on the rise. The current wave of inflation has been a fly in the ointment for everyone, including the rich! Currently, the list of most expensive cities is topped by Shanghai, and recent studies have shown that even the uber-rich population is now struggling to keep up with their expensive lifestyles during the inflation. The Chinese city was voted the most expensive city after there was a record increase in the price of 16 out of 20 luxury items, as reported by Julius Baer’s Global Wealth and Lifestyle Report in 2022.
List Of Most Expensive Cities
After Shanghai, London is second on the list, Taipei third, Hong Kong fourth, and Singapore fifth. In this list, most of the cities belong to the Asian-pacific region, while none of the American cities were listed in the top ten most expensive cities list. The ranking was developed by Swiss private bank Julius Baer; the annual ranking relies on the price of a basket of luxury goods, which represents the discretionary purchase by an individual who has $ 1 million or more in investable assets. The report also mentioned the aftermath of the COVID-19 pandemic when coupled with the global economic condition and supply chain issues, resulting in the rise in prices across these cities. Last year the inflation rose by 1%, while this year, the inflation crossed the mark of 7.5%.
The report also shows that 75% of the luxury goods and 63% of luxury services have increased in price this year. One of the contributing factors was the restrictions and the supply-chain disruption caused by the lockdown and the aftermath of the COVID-19 pandemic. Experts revealed that it was the technology packages like iPhones, iPads, and MacBooks whose prices shot sky high, and they witnessed the highest price increment globally.
Alan Hooks, the head of private clients at Julius Baer, commented on the situation and mentioned that no one could outrun the effects of inflation. While the rich can absorb financial shock to some extent, it doesn’t mean they will stay untouched for too long. The increase in inflation has led to other cities becoming more expensive. But for Tokyo, it turned into the greatest price falls over the year, dropping from the second most expensive city to the 8th rank on the list. This was due to the currency depreciation of the Japanese Yen.
Inflation has become a global reality for the entire world. Only time will tell how long this strain on the global economy lasts.