3 of the world's cheapest cities to live in are in India: Bengaluru, Ahmedabad, Chennai

Every year, the Economist Intelligence Unit (EIU) conducts a survey of the world's 172 major cities. The survey determines the cost of living in these cities, giving us an idea of where to plan our next vacation to or where to settle down.

So, if you're thinking of moving to New York or Singapore, take into account that both cities have one thing in common: their propensity to burn a hole in your pocket.

The cost of living in both cities is quite high, according to the survey by EIU. To understand how high it is, get this: EIU calculates the cost of living by creating an index that takes into account many variables. Now, in that measure, 1 represents the lowest (and thus the cheapest location to live) and 100 represents the highest, with increasing inflation. New York and Singapore are at the top of the list, both with a score of 100.

Here's what else was found: 

• EIU's Worldwide Cost of Living survey has seen prices shoot up by 8.1% this year, the highest in twenty years. 
• New York is ranked first for the first time, tied with Singapore, which is back in first place for the eighth time in ten years. Together, they have pushed Tel Aviv, Israel (which topped the list last year) to the third position.
• The most dramatic price increases have been for a litre of petrol, which has climbed by 22% year on year on average in local currency.
• The biggest upward movers were the Russian cities of Moscow and St Petersburg, which shot up by 88 and 70 places respectively as prices soared amid Western sanctions and buoyant energy markets supported the rouble.
• Prices for gas and electricity were up by 29% on average as western cities tries to wean themselves off Russian energy supplies.

Which other cities topped the list?

Which cities are the cheapest?

Why is the cost of living getting so expensive? EIU points out two major global reasons for it (apart from the crisis in individual countries):

1. The war in Ukraine has disrupted supply chains, particularly for energy and food.
2. Continuing pandemic restrictions has also impacted the supply chain, especially in China, one of the world's largest economy (Its zero Covid policy has also impacted their produce and hence the global chain).

Damascus, Tripoli and Tehran are the least expensive cities in the world to live in. Find out why in our Worldwide Cost of Living report https://t.co/6j1CzOHT4I pic.twitter.com/0fBrXAHC8S

— Economist Intelligence: EIU (@TheEIU) December 2, 2022

Where do Indian cities stand? According to the survey, Indian cities stand in quite a good position, as the prices of commodities are not that expensive as compared to other cities in the world. Surprisingly, three cities: Bengaluru (yes, I know, we are also shocked), Ahmedabad, and Chennai are in the bottom 10, cheapest cities to live in. All these three cities have a score of less than 40. However, Mumbai does have an index between 40-60 (a slightly expensive city to live in). 

What factors does the EUI index factors in?