Karachi has ranked 6th among the cheapest cities around the world, according to Economist Intelligence Unit’s ranking report for the Worldwide Cost of Living 2022 (WCOL). Damascus in Syria and Tripoli in Libya are among the cheapest cities in the world. Both face a number of economic and political challenges. And Karachi comes in sixth. But if you asked people living in Karachi, the rate of inflation has cut into their budgets like never before.

The cheapest cities in the world are Damascus in Syria and Tripoli in Libya. Both have numerous political and economic difficulties. Karachi follows in sixth place. But if you questioned Karachi residents, they’d tell you that the pace of inflation has wreaked havoc on their spending plans. According to the most recent WCOL study, prices in the world’s largest cities have increased by an average of 8.1% in local currency over the past year.

This rate is the fastest in at least 20 years, indicating a global crisis in the cost of living brought on by the conflict in Ukraine and maintaining China’s COVID-19 restrictions. “New York tops the rankings for the first time, tying with frequent leader Singapore, which is back in pole position for the eighth time in ten years. Together, the two have bumped Tel Aviv (Israel; top last year) down into third place,” said the report.

Together, the two have moved Tel Aviv (Israel), which took first place the previous year, to third position. Of the 172 cities surveyed. It was also mentioned that Inflation has been extremely high in Tehran (Iran), Buenos Aires (Argentina), and Istanbul (Turkey). However, Venezuela’s Caracas, where WCOL costs have increased by 132% since last year, has the greatest inflation rate.

According to the report, the Russian cities of Moscow and St. Petersburg, however, have moved up the rankings the most, rising 88 and 70 spots, respectively. The local currency’s value is being supported by capital controls, import restrictions, and the conversion of European gas payments into roubles. Western sanctions introduced when Russia invaded Ukraine in February 2022 have also increased local costs.

Inflation in local currency terms is currently 17.1% in Moscow and 19.4% in St. Petersburg, according to our study of pricing. The price of gasoline, which has increased by an average of 22% year over year, has seen the fastest rises in the WCOL index. The average increase in gas and electricity prices is 29%. Food and home item prices have also increased significantly.

Credit : Independent News Pakistan-INP