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LuandainAngolaistheworld’smostexpensivecityforexpatriatesforthesecondyearrunning,accordingtoMercer’s2011CostofLivingSurvey.TokyoremainsinsecondpositionandN'DjamenainChadinthirdplace.MoscowfollowsinfourthpositionwithGenevainfifthandOsakainsixth.Zurichjumpsonepositiontorankseventh,whileHongKongdropsdowntoninth.Newentriesinthetop10listofthecostliestcitiesintheworldareSingapore(8),upfrom11,andSãoPaolo(10),whichhasjumped11placessincethe2010ranking.Karachi(214)isrankedastheworld’sleastexpensivecity,andthesurveyfoundthatLuanda,intopplace,ismorethanthreetimesascostlyasKarachi.Recentworldevents,includingnaturaldisastersandpoliticalupheavals,haveimpactedtherankingsformanyregionsthroughcurrencyfluctuations,costinflationforgoodsandservicesandvolatilityinaccommodationprices.Downoneplacefromlastyear,London(18)istheUK’smostexpensivecity,followedbyAberdeen(144),Glasgow(148)andBirmingham(150).Belfast(178)isrankedastheUK’sleastexpensivecity.Thesurveycovers214citiesacrossfivecontinentsandmeasuresthecomparativecostofover200itemsineachlocation,includinghousing,transport,food,clothing,householdgoodsandentertainment.Itistheworld’smostcomprehensivecostoflivingsurveyandisdesignedtohelpmultinationalcompaniesandgovernmentsdeterminecompensationallowancesfortheirexpatriateemployees.NewYorkisusedasthebasecityandallcitiesarecomparedagainstNewYork.CurrencymovementsaremeasuredagainsttheUSdollar.Thecostofhousing–oftenthebiggestexpenseforexpatriates–playsanimportantpartindeterminingwherecitiesareranked.NathalieConstantin-Métral,SeniorResearcheratMercerresponsibleforcompilingtherankingeachyear,commented:“Multinationalcompanieshavelongunderstoodthecompetitiveadvantageofagloballymobileworkforce,thoughtheenduringchallengeistobalancethecostoftheirexpatriateprogrammes.Currencyfluctuations,inflation,politicalinstabilityandnaturaldisastersareallfactorsthatinfluencethecostoflivingforexpatriates.Itisessentialthatemployersunderstandtheirimpact,forcost-containmentpurposesbutalsotoensuretheyretaintalentedemployeesbyofferingcompetitivecompensationpackages.“Duringtheperiodofdatacollectionforthisyear’ssurveytheworldwitnessedanincrediblenumberofnaturaldisastersandpoliticalupheavalsthathaveallaffectedthelivesofexpatriateemployeestosomeextent.Currencyfluctuationsandtheimpactofinflationongoodsandservices–petrolinparticular-haveledtosomereorganisationoftheranking,”saidMsConstantin-Métral.“Overall,thecostoflivingincitiesacrossEuropehasremainedrelativelystable,whileinAfricathepictureispatchywiththelimitedavailabilityofaccommodationleadingtoincreasedlivingcostsinsomekeycities.“InNorthAmericaincreasingpetrolpricescontinuetocontributetorisingconsumerprices,butmanyofitscitiesdroppedintherankingsaspriceincreasesinotherregionshavebeenmoreseverepushingUScitiesdownthelist.AustraliancitieshavewitnesseddramaticrisesintherankingastheAustraliandollarhasstrengthenedagainsttheUSdollar.”Europe,theMiddleEastandAfricaOnlythreeEuropeancitiesremaininthetop10listofmostexpensivecities.Moscow(4)isstillthemostcostlyEuropeancityonthelist,followedbyGeneva(5)andZurich(7).Oslo(15)isdownfourplacesfromlastyear,whereasBern(16)hasjumpedsixandCopenhagendroppedsevenplacesfrom10to17.London(18)isfollowedbyMilan(25)andParis(27)bothdown10placesfromlastyear.St.Petersburgranks29,followedbyRome(34)andVienna(36).Upfrom76in2010,Stockholm(39)hasseenoneofthemostdramaticchangesintheregion–mainlyduetoaconsiderablestrengtheningofthelocalcurrencyagainsttheUSdollar.MsConstantin-Métralcommented:“InmostWesternEuropeancitiesthecostoflivingforexpatriateshasremainedrelativelystableoverthelast12months.However,manyoftheregion’scitieshavestilldroppedintheranking.Inlarge,thisisbecauseallcitiesarecomparedtoNewYorkandpriceincreasestherehavebeenmoresignificantthaninmostEuropeancities.Somereductioninaccommodationcosts,duetotheeconomicdownturn,hasalsobeenbehindchangesinrankingsforselectEuropeancities-mostnotablyAthensandBarcelona.”Ranking24,TelAvivisdownfiveplacesfrom2010butcontinuestobethemostexpensivecityintheMiddleEast.AbuDhabi(67),Dubai(81)andAmman(103)followhavingdropped17,26and20placesintherankingrespectively.“ThetrendoffallingaccommodationcostscontinuesacrosstheMiddleEastregion,drivingthecitiesdowntherankingalongwiththecostoflivingforexpats.Dubaiinparticulariswitnessingadrasticreductioninaccommodationcostsasthesupplyofpropertykeepsfloodingtherentalmarket,”saidMsConstantin-Métral.Luanda(1)remainsthemostexpensivecityforexpatriatesacrossAfricaandglobally,andN'Djamenafollowsinthirdplace.Libreville(12)hasslippedfiveplacessincelastyear.Niameyremainsat23whereasVictoria(25)intheSeychellesdropped12placesastheSeychellesrupeehasweakenedagainsttheUSdollar.InSouthAfrica,Johannesburg(131)andCapeTown(158)haveleapt20and13placesintherankingrespectively,reflectingthestrengtheningoftheSouthAfricanrand.TheleastexpensivecitiesintheregionareTunis(207)andAddisAbaba(211).MsConstantin-Métralcommented:“FindinggoodandsecureaccommodationforexpatriateemployeesisarealchallengeinmostoftheAfricancitiesonthelistandcostscanbesignificantcomparedtootherr