The EIU report compares the cost of more than 160 services including everyday items and basic human needs such as food, clothing and utility bills. The report is based on New York and includes 133 cities of the world.
Karachi, the capital of Pakistan, came top of the list of the world’s cheapest cities, followed by Bangalore, Caracas, Mumbai, Chennai and New Delhi. Bucharest is the only European country on this list; although wages are low, the cost of living is too offering relative value for money.
The biggest fall was Caracas in Venezuela, which slid 124 places. Usually a consistently expensive city, reaching 6 place last year, it came out as one of the cheapest in this survey due to a weaker currency and the use of multiple exchange rates.
The agency had named Karachi as the least expensive city in the 2011 and 2012 survey. Pakistan’s economic hub stood at second place in 2014.
Meanwhile, Singapore continues to top the list of the five most expensive cities in the world followed by Paris, Oslo, Zurich and Sydney.
The decrease in oil prices whereas foreign currency had an impact on the cost of living in many cities of the world.