These are the most expensive cities in the world to live in
The rising prices of luxury things have taken a bite out of the ultra-massive rich’s purchasing power in some of the world’s most costly cities, such as Shanghai and Hong Kong, over the past year.
The greater cost of designer handbags, shoes, suits, and watches for the wealthy in London and New York, on the other hand, does not even keep up with their countries’ general inflation rates.
The subtext of Julius Baer Group Ltd.’s 2022 global wealth and lifestyle study is the global disparity in price growth and monetary policy, which ranks the world’s most costly cities by examining the cost of residential property, vehicles, airfare, business school, and other luxury.
Shanghai topped the list once more, while London moved up to second place from Tokyo, which fell to eighth position by the most of any city. New York was ranked 11th, down one spot from the previous year’s poll.
The findings show that the wealthy are not immune to inflation, which has reached 8.6% in the United States and 9% in the United Kingdom, even though they are better equipped to tolerate it than the poor.
Furthermore, wealthier people are more likely to hold equities, which have fallen in value as central banks boost interest rates to combat inflation. According to the Bloomberg Billionaires Index, the world’s 500 wealthiest people have had a collective $1.4 trillion wiped from their fortunes this year.
According to the Julius Baer analysis, “although the financial condition of many high-net-worth individuals has genuinely improved over the last year, the parallel growth in the basket of goods and services that make up our lifestyle index implies the’money illusion’ of prior years still remains.”
Despite this, “our poll suggests a modestly positive post-pandemic outlook,” according to the report. “The wealthy are once again spending normally.” Globally, the cost of digital devices such as computers and smartphones, increased by 41% owing to a tendency to work from home and a global chip scarcity. Hiring a lawyer has increased by 33%, while bike prices have increased by 30%. Wine, on the other hand, has dropped by 26%, more than any other category.
The analysis looked at the pricing of approximately 20 items and services that people with bankable household assets of $1 million or more generally purchase in 24 cities across the country, with data collected in two rounds between November and April. The name of Moscow has been removed from the list.