The indexes are calculated utilizing the costs for specific quantities of the same goods and services in each location, centered on expatriate spending patterns across 13 broad categories (Basket Groups).
The cost of living studied is the expense of maintaining an expatriate standard of living. When comparing the price of living between different locations the objective is always to calculate the difference in the price of living and express this as a price of living index by dividing the cost of residing in Location A by the expense of residing in Location B.
The expense of living index reports the difference in the price of living involving the 2 locations for the exact same items purchased. For example an index of 140 ensures that the Location is 40% higher priced compared to comparator Location. This may mean that someone who moves between both locations would have to earn 40% more, to really have the same standard of living as they've currently. KIU
Tokyo is the general priciest place on earth for expats. Tokyo can be the most expensive place in the world for accommodation, whilst it is the fourth most expensive place in the world for groceries. Brasilia has moved up 9 places from 12th in October 2009 to be the next most expensive place on the planet to live for expatriates. Sydney has rocketed up the rankings to 10th having been ranked 15th in January this year. Dubai has dropped another 8 places after dropping 9 places in the previous quarter to fall out from the top 10 and is now ranked 26th, but interestingly remains the most expensive place for restaurants, meals out and hotel costs.
The fastest mover upwards is Ashgabat in Turkmenistan having moved up 94 places from 257rd to 163. The relative cost of living for expatriates in Gibraltar has additionally increased considerably having moved up 94 places to 92. South Africa has experienced a substantial increase in global cost of living terms mainly because of the strengthening of the Rand. Cape Town has moved up 53 places to be ranked 193rd.
Alcohol & Tobacco is most high-priced in South Tarawa in Kiribati, followed closely by Moroni in the Comores, and Oslo in Norway. Clothing is most high-priced in Manama, Bahrain followed by Moscow, Russia. Education is most expensive in Caracas, Venezuela and Brasilia in Brazil. Groceries are most expensive in Kiribati. Oslo, Norway is most expensive for Transport.