Hong Kong stays on top of global ‘most expensive cities’ list

The index includes 226 locations, measuring the comparative cost of more than 200 items in each

Hong Kong, China. Reuters

Hong Kong has retained the top spot in this year’s global index, which looks at the most expensive cities for expatriate employees.

Singapore came second, with Swiss cities Zurich, Geneva and Basel rounding out the top five most expensive cities.

London has jumped into the top 10, going up nine places since last year, to be ranked eighth in Mercer’s 2024 cost-of-living city ranking.

Placed just below New York on the list, London jumped up thanks to factors including the general cost of living and rental prices, according to those behind the list.

Edinburgh was placed at 53, Glasgow at 68, Birmingham at 78, Aberdeen at 82, and Belfast at 87.

Paris was ranked at 29 and Dublin at 41.

The index includes 226 locations. It measures the comparative cost of more than 200 items in each location, including transport, food, clothing, household goods and entertainment.

Abuja in Nigeria was ranked the least expensive, at 226.

Mercer, a business of Marsh McLennan, compiles the ranking to help multinational employers plan compensation packages for workers.

Rising housing costs in many cities have been a challenge for employers, with volatile inflation trends also putting a strain on workers’ compensation packages, Mercer said.

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These factors can make it difficult for employers to attract and retain top talent and can increase compensation and benefits expenses, limit talent mobility and raise operational costs, the report said.

“Cost-of-living challenges have had a significant impact on multinational organisations and their employees," said Yvonne Traber, Mercer’s global mobility leader.

“It’s important for organisations to stay informed about cost-of-living trends and inflation rates, and seek input from employees on these issues to effectively manage their effects.

“High living costs may cause assignees to adjust their lifestyle, cut back on discretionary spending or even struggle to meet their basic needs.”

Ms Traber said some employers may wish to offer compensation packages that include housing allowances or subsidies, or provide support services.