Residents of the country's two largest cities have known it for ages, but an international survey today confirmed their suspicions - Auckland and Wellington really are two of the most expensive places on earth to live.
The strong New Zealand dollar and rising fuel costs pushed up the cost of
living in our major cities, according to a global survey.
The latest worldwide cost of living survey by the magazine The Economist's Intelligence Unit showed Auckland had jumped to 29th place out of the 128 cities surveyed, while Wellington rose to 32nd place. Last year they shared 39th spot.
The survey compares the price of a basket of goods and services, and uses New York as a base index of 100 for comparison.
Its purpose is to provide companies with a guide to calculate living expenses for executives and their families who have been posted overseas.
Auckland has an index reading of 98 and Wellington 96, compared to last year when both had an index reading of 91.
Norway's capital, Oslo, is now the most expensive city, bumping Tokyo off the top of the list for the first time in 14 years.
The Economist said Japan's gradually weakening yen had been compounded by years of low inflation and deflation, while Norway had enjoyed strong economic growth which had pushed up consumer confidence and investment.
Closer to home, Sydney ranked 16th (compared to 25 last year); Melbourne was 19th (28); Brisbane 32 (42) and Adelaide 45 (54).
Tehran was the bottom of the list, with a cost of living set at around a third of that of New York. The Economist said that in 1991 Tehran topped the survey, due to Iran's overvalued official exchange rate. Tehran quickly tumbled to the bottom of the league when the currency was revalued.
The Economist said the two main reasons for a city's cost of living to rise were exchange rate movements and price movements.
- NZPA
