The High Cost of Living : Tokyo Tops List as Most Expensive City; Mexico City Most Affordable

Tokyo is by far the world’s most expensive city, according to a survey by the Union Bank of Switzerland.

The Japanese capital topped a list measuring the cost of living, including rents, in 52 cities around the world. Tokyo earned an index rating of 194.4, with Zurich as the base at 100.

Oslo was second, with a 113.1 rating on the index, followed by Helsinki, Finland, at 106.2 and Geneva at 102.6. The least expensive city was Mexico City, which rated 42.7.

The index is based on a basket of goods and services geared to European consumer habits, which could exaggerate cost differences between some cities, the bank said.

The survey was conducted in the spring, using currency exchange rates based on the end of March.

A furnished four-room apartment of the kind favored by European executives costs the equivalent of $8,300 (U.S.) a month in Tokyo, while costing only $2,200 in New York, $1,750 in Singapore, $835 in Frankfurt, West Germany, and $290 in Johannesburg.

But even excluding rents, the survey ranked Tokyo the most expensive city, about 38% costlier than second-place Oslo.

An earnings survey, based on income levels of 12 selected professions, showed Zurich with the highest incomes--49% higher than Tokyo, 37% higher than Los Angeles, 73% above London, and more than 30 times the level in Cairo.

For example, it is difficult to hire a secretary in Zurich for under $25,300 a year, a level more than 10 times that of Manila; Bombay, India; Cairo, or Lagos, Nigeria.

Los Angeles topped the bank’s list for most local purchasing power of after-tax incomes. The city’s residents can get 18% more for their wages than those of Zurich and can buy 53% more than Londoners.

Food prices were highest in Tokyo, Zurich, Geneva and the Scandinavian capitals, while they were lowest in Sao Paulo, Brazil.