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| The Petronas Twin Towers, Kuala Lumpur - - Malaysia's capital is the most inexpensive of 71 global cities. |
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As the dollar dropped sharply, bargains abound in the US
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Oslo, London and Copenhagen are still the three most expensive cities, Dublin has jumped to the fourth spot
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Highest purchasing power still awarded to Zurich
New hot spots for international shoppers
Dublin is fourth most expensive city of 71 global cites and Kuala Lumpur is the cheapest published according to a report published by Swiss banking giant UBS, on Tuesday. In 2006, Dublin was the 13th most expensive city surveyed now it ranks number four, just in front of Zurich.
The sharply declining relative value of the US dollar has pushed US cities down in the global price rankings and a shopping trip to the US is now an attractive proposition for Europeans. Similarly, Hong Kong is now 18% cheaper than Barcelona, where inflation and a strong euro have driven prices higher. South Africa and Indonesia are more attractive tourist destinations now, as their currencies have depreciated. Shanghai and Beijing, meanwhile, remain comparatively inexpensive despite China's economic boom and rising inflation.
Switzerland's largest banking group UBS produced the Prices and Earnings, 2008 update - - including ranking tables
Zurich's workers take home the most, after tax and social security deductions
In addition to accounting for exchange rates and inflation, the recalculated “Prices and Earnings” index also recognizes that a slice of economic growth is passed on to the workforce in the form of real wage increases. In the updated study, the highest gross wages are paid in Scandinavia. But once taxes and social security are accounted for, it is workers in Zurich and Dublin who retain the greatest share of their wages.
Excluding housing prices, UBS found that workers in Zurich, Geneva, Dublin and Luxembourg, have the most to spend for the hours they work. An hour’s labour in Dublin delivers almost 28% more purchasing power than one in Amsterdam.
EU newcomers have lower purchasing power than Western Europeans
Eastern European cities all rank in the lower half of our purchasing power ranking, as inflation has erased some of their strong wage gains. In a global comparison, net purchasing power is highest in Swiss cities and in Luxembourg. Berlin ranks high in terms of hourly purchasing power. However, as is the case in many European cities, less time spent at work than in Asia or the US leaves the German capital only at the low end of the top one-third of our purchasing power ranking when UBS use yearly wages.
