According to the Economist Intelligence Unit’s biannual survey, Tel Aviv, Israel, is now the most expensive city in the world to live in.

For the first time, the Israeli city topped the EIU’s global cost of living survey in December 2021, moving up from fifth place last year.

Tel Aviv gained in the rankings, according to the EIU, owing to a surge in the Israeli currency, the shekel, which was “boosted against the dollar by Israel’s successful Covid-19 vaccination launch.”

Israel had one of the world’s most efficient Covid-19 vaccination programs. As of Monday, 62 percent of Israel’s population has been properly vaccinated, according to data from Our World in Data. According to Reuters, the Israeli shekel was up 4% year-to-date against the US dollar in early November, but has subsequently lost ground.

According to the EIU’s newest study, which looked at the costs of over 200 products and services in 173 towns, around a tenth of commodities in Tel Aviv increased in price.

Tel Aviv at Night

In general, the EIU said that from September 2020 to September 2021, the inflation rate of the prices it examined increased by 3.5 percent in local currency terms, up from 1.9 percent in 2020. It said that this was the quickest rate of inflation in its index in the previous five years.

The EIU attributed the spike in commodity and other products prices to supply chain difficulties, currency exchange rate volatility, and changes in consumer demand. According to the study, transportation witnessed the greatest cost increase, with the average price of gasoline per liter increasing by 21% in 2021.

According to Upasana Dutt, the EIU’s head of global cost of living, prices in many cities are anticipated to grow higher in the next year as wages rise.

“However, we expect central banks to hike interest rates slowly in order to contain inflation,” she added, adding that current price gains should begin to moderate.

Paris, the French city, is now tied for second place in the rankings with Singapore. Due to a dramatic drop in the cost of groceries and clothing, Rome, Italy, fell the most in the rankings.

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