Sao Paulo and Rio de Janeiro jump on the latest cost of living survey.
BY LBC STAFF
Brazilian business hub is now among the world’s ten most expensive cities for multinational executives, according to Mercer.
Sao Paulo jumped from 27th place to tenth on the latest Cost of Living survey from Mercer. The survey covers 214 cities across five continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.
The annual ranking, which is used to help multinational companies determine compensation for their expatriate employees, uses New York as the base city.
Meanwhile, Brazilian cities Rio de Janeiro and Brasilia also jumped significantly. Rio went from being the 29th most expensive city to the 12th-most expensive, while Brazilian capital Brasilia jumped from 70th to 33rd place.
Mexico City also ranks higher this year, going from 166th place to 148th place, while Mexican business city Monterrey jumped ten spots to 183rd place.
Venezuelan capital Caracas jumped 49 spots to 51st place, Colombian capital Bogota increased three spots to 63rd place, while Chilean capital Santiago jumped 48 places to 75th place.
“Inflation pressures continue to be the main impact on the cost of goods and services in Argentina and Venezuela, causing their cities to jump in the ranking,” Nathalie Constantin-Métral, Senior Researcher at Mercer responsible for compiling the ranking each year, said in a statement. “Overall, exchange rates in South America remain relatively stable, with the exception of local currencies in Brazil, Chile and Costa Rica which have all strengthened significantly against the US dollar, causing the region's cities to rise in the ranking. “
Meanwhile, Peruvian capital Lima fell three places to 138th place, while Panama City declined 14 spots to 141st place and Santo Domingo went from 14th place last year to 162nd this year.
Mercer spokesman Noel O'Connor says the declines aren’t necessarily the result of reduce cost of living, but that other cities on the survey increased their rankings.
Nicaraguan capital Managua ranks as the second-least expensive city in the world, followed by Bolivian capital La Paz.
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