Paris is the most expensive city in the world

Paris is the most expensive city to live in according to the latest survey from Economist Intelligence Unit, a sister company to The Economist.

The survey assesses the cost of living by comparing housing, food, clothing, transport and utility bills and the like in 132 cities around the world.

The study is aimed at helping companies calculate allowances for executives and their families being sent overseas.

Tokyo comes second, up from sixth place a year ago. The fall in Russia’s currency against the dollar has made Moscow cheaper than it once was.

According to economists, there is nothing surprising about seeing Paris take the first place, firstly because all the major cities of developed countries are expensive.

And because the EIU converts all data into dollars to better compare prices, the strengthening euro played a big role in this year’s rankings.

The euro has gained nearly 20 percent versus the dollar during the past year. Last winter, a euro traded for about $1.28. During the year 2009 the exchange rate was more than $1.50.

TOP 10 Most Expensive Cities In The World

1 – Paris, France
2 – Tokyo, Japan
3 – Oslo, Norway
4 – Frankfurt, Germany
5 – Milan, Italy
6 – Sydney, Australia
7 – London, U.K.
8 – Dublin, Ireland
9 – Chicago, U.S.A
10 – Shanghai, China