After holding the dubious title of the world’s most expensive city for expats for much of the past two decades, Tokyo no longer even makes the top 10.
At least those are the findings of the annual cost of living survey by consultants Mercer. The reason behind its demise — Japan’s biggest metropolis slid from seventh to 11th spot after occupying third spot in 2013 rankings — was the weakness of the yen against the US dollar over the past year.
Indeed, exchange rate fluctuations have played havoc with the 2015 rankings, which are now in their 21st year.
“Currency movements will always play a really big part in the rankings but the impact this year has been particularly acute,” said Kate Fitzpatrick, a consultant at Mercer.
Both the yen and the euro have weakened markedly against the US dollar and Chinese renminbi, while the Swiss franc has also strengthened after the surprise lifting of its currency cap at the start of the year.
As a result, Zurich and Geneva have both moved up one place to occupy two of the five top spots in the rankings. Bern slid one place to ninth but only because of a strong showing from Shanghai, Beijing and Seoul.
The survey compares a basket of over 200 goods and services, from imported food staples and the cost of hamburger to the price of a cinema ticket, and combines it with the cost of renting international standard accommodation.
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