Paris and Zurich have united Hong Kong to be the lightest cities on the planet since the COVID-19 pandemic has affected the prices of everyday products.
The French-Swiss and capital town leapfrogged over Singapore and Osaka to maintain a combined first place with Hong Kong at the Most Recent Cost of Living Index from The Economist Intelligence Unit (EIU).
The indicator compared the costs of 138 merchandise and services out of several 130 cities in September 2020 and discovered that costs on average climbed 0.3 percent over the last year.
But areas were affected differently.
In general, cities in the Americas, Africa, and Eastern Europe are becoming less costly while people in Western Europe are becoming more expensive. This is partially explained by the growth of European currencies against the US dollar.
Singapore and Japan’s Osaka, which this past year occupied the high place with Hong Kong, are becoming cheaper as a result of an exodus of foreign workers that has resulted in a decrease in demand and therefore costs.
The index found that costs were affected by five chief tendencies: currency changes, supply chain issues like shortages of particular goods such as toilet and wheat roll, action taken by authorities like price controls, customers’ more precautionary strategy over fears their earnings could be struck, and lifestyle changes.
The report notes that what customers today view as essential has changed and price-conscious ones have chosen cheaper options, increasing competition for less-expensive merchandise.
However, costs of top quality products are comparatively untouched as high-earners, even though not as likely to store too often, haven’t changed their habits considerably.
Costs of consumer principles have remained steady overall, but the costs of tobacco and alcohol have grown with the latter reporting that the highest-year-on-year growth for any non-durable merchandise.
Aside from tobacco, costs of recreational things and services — novels, consumer electronics — also have seen the steepest typical growth.
Clothing was the only type to observe an ordinary drop from the index, due to low need as most non-essential stores were shut for many weeks through lockdowns.
Tehran, Perth, and Guangzhou were the largest climbers from the index in comparison to last season but stay at the 79th along with a joint 62nd spot respectively.
In the event of the Iranian capital, which jumped 27 places year-on-year prices were affected by US sanctions that have affected the supply of products.
Latin America was struck hard by currency weakness and increasing poverty levels.
The EIU expects cost trends to stay similar in 2021 because the worldwide market is not likely to go back to pre-pandemic amounts until 2022.