Cheaper exports is aiding the British economy
The capital moved from the sixth most expensive place to live in the world to the 24th, while Manchester fell 25 places, more than any other city.
London’s dramatic fall down the ranks means that it is now 17 per cent cheaper than Paris and on a par with Dublin, according to the survey.
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Intense competition among British retailers accompanied by low oil and commodity prices has kept significant rises in check
Jon Copestake, survey editor
Jon Copestake, who edited the survey, said: “Intense competition among British retailers accompanied by low oil and commodity prices has kept significant rises in check over the last few years”.
He added, however, that as a result of rising import prices, British shoppers will likely start noticing higher levels of inflation, “even as businesses potentially benefit from inbound retail tourism and cross border trade”.
The report was compiled by the Economist Intelligence Unit, who measured the cost of a basket of more than 150 goods in 133 cities around the world.
London has become the cheapest of the world’s major global centres thanks to the 15 per cent fall in the value of sterling since the EU referendum last year.
Paris is now 17 per cent more expensive than London
In the report, Worldwide Cost of Living 2017, the authors warn: “The UK has already seen sharp declines in the relative cost of living owing to the Brexit referendum and related currency weaknesses.
“In 2017 these are expected to translate into price rises as supply chains become more complicated and import costs rise. These inflationary effects could be compounded if sterling stages a recovery.
Singapore is the world's most expensive city
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Europe's economy is still feeling the negative impact of uncertainty caused by Brexit, with investors unsure if other nations will take the same route as Britain.
For the first time in 15 years, the cost of living in London is also cheaper than the cost of living in New York.
The world’s most expensive city is Singapore, where average prices are 20 per cent higher than in New York and one-third more than in London. In second place is Hong Kong and third Zurich, the priciest European city.