Written by Staff Writer at CNN
Bridget Reed, CNN
Nairobi and New York will see the biggest prices increases when the Bank of International Settlements in Basel, Switzerland, publishes its list of the most expensive cities in 2021.
The lender measures the cost of living in 71 cities around the world, using methods that take into account a variety of factors such as the exchange rate of the US dollar to the local currency, rents and transport.
A basket of 200 basic items of food and non-alcoholic beverages which are used to calculate the index costs $6,878 a year in New York, while in Nairobi the figure is $10,867.
The overall inflation rate for both cities — which, in New York, has risen since last year — is estimated to be around 3.4% in 2021, according to the lender. In comparison, inflation in other cities around the world is forecast to be around 3.1%.
When London, Paris and Frankfurt came in second, fourth and fifth respectively, on the list, they each increased their prices by 2.7%.
New York and Nairobi’s rises were the most dramatic of the five cities, following an increase of 21.1% and 20.5% in 2016 and 2017 respectively.
Among the rest of the top 10 in 2021, Rio de Janeiro will experience the highest inflation rate — at 6.7% — and Zurich, Zurich and Abu Dhabi also see significant increases. At 6.3%, annual inflation in Hong Kong will be its lowest.
Emirates airlines takes passengers across the Atlantic in style. Credit: REUTERS/Slim Shady/File Photo
London had the highest inflation rate — at 5.8% — in the list in 2018, and San Francisco saw the biggest jump on the list since 2016 — at 16.2%.
These findings echo results from a separate survey carried out by comparison website Travelzoo, which analyzed the cost of more than 400 items in over 60 cities around the world.
Among the places with the cheapest 10 cities in the report were Bali, Indonesia; Antalya, Turkey; Sydney, Australia; Batumi, Georgia; and Dubrovnik, Croatia.
Most expensive cities in Asia-Pacific in 2021
1. Bangkok, Thailand
2. Nairobi, Kenya
3. New York, United States
4. Miami, United States
5. Singapore, Singapore
6. San Francisco, United States
7. Dubai, United Arab Emirates
8. Jakarta, Indonesia
9. Manila, Philippines
10. Tokyo, Japan