Photo Source : https://500px.com/photo/26501817/kathmandu-city-by-helminadia-ranford

 

--By TC Correspondent

 

Costs of living in Kathmandu may be frightening for Nepalis with average income. A latest report by the Economist Intelligence Unit (EIU), however, has shown different finding. According to the EIU’s Worldwide Cost of Living (WCOL) 2014 index, Kathmandu is among the least expensive cities in the world. The metropolis is placed 5th in the list of 10 least expensive cities. The index measures cost of living in 131 cities across 93 countries. This year, Kathmandu moved up one place to 127th spot, scoring 44 points. 

 

Last year, the city scored 50 points and was ranked 128th position in the WCOL index. India’s financial hub Mumbai (ranked 131st) grabbed the top spot of least expensive city of the world followed by Pakistan’s Karachi (130th) and Indian capital New Delhi (129th). 

 

EIU prepared the index after an extensive survey on four factors - average USD prices of one kg loaf of bread, one bottle table wine, 20 branded cigarettes and one litre unleaded petrol.  The survey, which has been carried out for more than 30 years, allows city-to-city comparisons, which is based on the city of New York that has an index set at 100 points. 

 

The report finds that purchasing one kg loaf of bread in Kathmandu in current prices would cost USD 1.26 against USD 0.91 in Mumbai. The WCOL index informs that average price of one bottle table wine in Kathmandu is USD 18.98, cheaper by USD 1.61 compared to Mumbai where it costs USD 20.59. Similarly, the index puts average price of 20 branded cigarettes in Kathmandu at USD 1.53. Despite the price hike in the local market, the city saw price of a pack of branded cigarettes declining by 0.16 cents against last year’s USD 1.69, the report states. Likewise, average price of one litre of unleaded petrol is USD 1.24 in Kathmandu, which is averaged at USD 1.21 in Mumbai. 

 

Other least expensive cities in the list include Algiers (Algeria), Damascus (Syria), Bucharest (Romania), Panama City (Panama) and Saudi Arabian cities- Jeddah and Riyadh. The report also highlights some major issues in the cheapest cities. “Outside India bargain hunters may be put off by the security risk in many of the countries in which the world’s cheapest cities are found. Pakistan, Nepal, Syria and Algeria all feature in the bottom ten, but have had well documented security issues or domestic unrest,” it says.  

 

Singapore topped the index as the most expensive city in the world followed by Paris (France), Oslo (Norway), Zurich (Switzerland), Sydney (Australia), Caracas (Venezuela) Geneva (Switzerland), Melbourne (Australia), Tokyo (Japan) and Copenhagen (Denmark). According to the report, Tokyo fell down from the top spot due to the weaker Yen despite growing consumer confidence and price inflation.