Tel Aviv It is the most expensive city in the world, according to a study by The Economist. Tel Aviv defeated Paris, Zurich, Hong Kong and New York and reached first place for the first time, after being ranked fifth last year.
The reasons for this dubious win have to do with itThe strength of the shekel against the dollar, thanks to the successful vaccination campaign, according to the Economist’s research unit. The numbers show that 62% of Israelis were vaccinated in all three doses, and the shekel rose by 4% against the dollar.
The study examined 200 products and 173 services in each city, and found that in Tel Aviv the price of ten products increased. Inflation at a rate of 3.5% in the past year, compared with 1.9% in the previous year, also contributed to the dubious status that Tel Aviv gained. This is the largest increase in the Economist’s index in the last five years.
Disruptions in the global supply chain, fluctuations in the exchange rate and changes in consumer demand have led to this increase in product prices. The largest increase was recorded in the transportation industry, with the price of fuel rising by an average of 21% in 2021, according to the study.
Researchers explain that price increases are expected in many cities around the world in the coming year, and on the other hand there is an expectation that central banks will raise interest rates to neutralize inflation.