New Zealand cities' cost of living soars

By ELLEN READ

Auckland has leaped 35 places to 80th in a list of 144 of the world's most expensive cities, with the strong New Zealand dollar getting the blame.

The rise was the largest recorded for any city bar Sydney, which jumped 47 places to 20th in the Mercer Human Resources cost of living survey.

Wellington rose 31 places to 86.

"Cities in New Zealand and Australia have risen most in the rankings this year due to the significant appreciation of local currencies against the US dollar," Mercer principal Rob Knox said.

The survey was done in March using a New Zealand dollar value of 67.76USc. The kiwi has fallen since then and is now nearer 62.5USc. A even larger fall has occurred across the Tasman where the Australian dollar is now at 68.88USc from the 76.23USc used in the survey.

The Mercer survey covers 144 cities and measures the cost of more than 200 items including housing, food, clothing, transport and entertainment.

Tokyo retained first place as the world's most expensive city, and Asuncion, in Paraguay, brought up the rear of those surveyed.

Four of the world's 10 most costly cities are in Asia, - Tokyo, Osaka (4), Hong Kong (5) and Seoul (7).

London is the most expensive city in Europe and ranks second globally. High accommodation and transport costs together with the appreciation of the pound against the US dollar have pushed the city up in the rankings. Geneva, in 6th place, is the next most expensive European city, followed by Copenhagen in 8th.

New York (12) remains the most expensive city in North America, but US cities have dropped in the rankings due to the depreciation of the dollar against many other currencies.

Mercer uses the survey to help Governments and major companies protect the purchasing power of their employees when transferred abroad.

Knox said that while Auckland and Wellington had become comparatively more expensive, both scored well in Mercer's quality-of-life survey.

Published in March, it ranked Auckland fifth among 215 cities. Wellington was 15th.


Mercer cost of living survey

1. Tokyo, Japan

2. London, UK

3. Moscow, Russia

4. Osaka, Japan

5. Hong Kong

6. Geneva, Switzerland

7. Seoul, South Korea

8. Copenhagen, Denmark

9. Zurich, Switzerland

10. St Petersburg, Russia

20. Sydney, Australia

80. Auckland, NZ

86. Wellington, NZ