With rising inflation and an increase in the standard of living, Mumbai has become the costliest city for non-residents in the country, pipping even global metros like Melbourne and Frankfurt, a recent survey has revealed.
According to the 2018 cost of living survey by global consulting firm Mercer, Mumbai is ranked at 55th spot in the list, ahead of Melbourne (58), Frankfurt (68), Buenos Aires (76), Stockholm (89) and Atlanta (95), news agency PTI reported. Hong Kong is ranked as the world’s costliest city to live in for non-residents, followed by Tokyo (2), Singapore (4), Seoul (5), Shanghai (7), and Beijing (9).
Among the Indian cities, Delhi is ranked at 108th position, followed by Chennai (144) and Bengaluru (170). Kolkata is the least expensive Indian city, placed at 182nd place in the list.
Inflation, among the highest in Indian cities surveyed, remained at 5.57 per cent for the set of goods surveyed during the period.
“While cities such as Melbourne and Buenos Aires have fallen in their rankings, Mumbai’s jump in ranking is also attributable to continued surge in prices of food, alcohol and domestic supplies,” the survey noted.
The report also noted that transportation costs, which includes taxi fares and cost of registration and road taxes played a key role in the rise in ranking of the financial capital of India. Costs of sporting, leisure activities also played a role in rising prices, the survey noted.
“This increase in prices of goods in our cities, viewed along with currency exchange rate, has a direct impact on the Indian assignee compensation when using a balance sheet approach, making overseas assignment costs sometimes greater and sometimes smaller,” news agency PTI quoted Padma Ramanathan, India practice leader, global mobility, Mercer as saying.
The annual survey designed by Mercer helps multinational companies and governments to determine the compensation strategies for their expatriate employees.