The rank of the overall international cost of living indexes is reported as at April 2010 using New York as the base city. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
The cost of living studied is the cost of maintaining an expatriate standard of living. When comparing the cost of living between different locations the objective is to calculate the difference in the cost of living and express this as a cost of living index by dividing the cost of living in Location A by the cost of living in Location B.
The cost of living index reports the difference in the cost of living between the 2 locations for the same items purchased. For example an index of 140 means that the Location is 40% more expensive than the comparator Location. This would mean that a person who moves between the two locations would need to earn 40% more, to have the same standard of living as they have currently.
Tokyo is the overall most expensive place in the world for expats. Tokyo is also the most expensive place in the world for accommodation, while it is the fourth most expensive place in the world for groceries. Brasilia has moved up 9 places from 12th in October 2009 to be the third most expensive place in the world to live for expatriates. Sydney has rocketed up the rankings to 10th having been ranked 15th in January this year. Dubai has dropped another 8 places after dropping 9 places in the previous quarter to fall out of the top 10 and is now ranked 26th, but interestingly is still the most expensive place for restaurants, meals out and hotel costs.
Article Source: http://EzineArticles.com/3570327