Istanbul, with a population of at least 12 million, dropped from 23rd place last year to 53rd in this year`s list compiled by international consultancy firm Mercer.
The list covers 143 cities over six continents and is formulated by comparing the cost of more than 200 goods and services including rent, transportation, food, clothing, household goods and entertainment.
Tokyo replaced Moscow as the world`s most expensive city and the Japanese city of Osaka came in second, leaving the Russian capital in third place. The most affordable city to reside in this year is Johannesburg, South Africa. Istanbul lost 30 basis points compared to last year, thus becoming a more affordable city to live in.
The index uses New York City as a base reference with 100 points and the U.S. dollar as the currency to measure costs. Tokyo topped the list with 143.7 points and was three times more expensive than Johannesburg. The major changes in the listings are said to be a result of wide currency fluctuations this year. The positions of European cities on the list were most affected by the changes in exchange rates. While many European cities dropped lower on the list, cities in America, China and the Middle East became more expensive places to live in. Europe did, however, still have four cities in the top 10. Despite the Ruble losing blood to the U.S. dollar, Moscow remained Europe`s most expensive city. In Asia, the strengthening of the yen resulted in Tokyo and Osaka taking top spots on this year`s list compared to second and 11th places respectively last year.
