Strong euro causes cost of living to soar in eurozone

INTERNATIONAL REWARD

Strong euro causes cost of living to soar in eurozone

The cost of living in the eurozone has increased sharply in comparison to the rest of the world, according to a survey by the Economist Intelligence Unit.

The most expensive cities in the world are still found in Japan. Tokyo and Osaka are ranked first and second -- positions they have held since 1991. But European cities dominate the top of the list, with seven cities ranked among the world's top ten.

A weaker dollar, particularly compared with the euro, has made the US relatively less expensive. New York (13th) is America's costliest city, with Chicago coming in 16th and Los Angeles 19th.

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Title: Worldwide Cost of Living, Economist Intelligence Unit, July 2003

Methodology: This bi-annual survey, compares prices and products in 134 cities around the world. Its purpose is to provide companies with an unbiased and independent guide from which allowances can be calculated for executives and their families being sent overseas. The Economist Intelligence Unit can calculate indices based on any one of the cities.

Availability: The survey is available from the Economist Intelligence Unit, tel: +44 (0)20 7830 1007, email: london@eiu.com. You can also purchase the survey online at http://wcol.eiu.com

You can read the press release online at http://store.eiu.com/index.asp?layout=pr_story& press_id=1050000705& ref=pr_list

To compare the cost of living in various cities visit http://eiu.enumerate.com/asp/wcol_PriceIndexSample.asp

You can also change the exchange rates used to calculate the indices, view the actual prices of goods and services in the cities you have chosen, and customise the index to reflect your company's compensation policies.

The Economist Intelligence Unit is the business information arm of The Economist Group, publisher of The Economist. Through its global network of over 500 analysts, it continuously assesses and forecasts political, economic and business conditions in nearly 200 countries.

Posted 1 September 2003