London has fallen to its lowest position in 20 years on the global cost of living rankings, a survey has revealed.
According to the findings of the Worldwide Cost of Living Survey, London fell from sixth to 24th, a drop of 18 places and its lowest ranking since 1997 whilst Manchester fell 25 places to 51st, the biggest decline for any city included in the survey.
The drop now means that London is now 17 per cent cheaper than Paris and has the same cost as living in Dublin. The fall comes as the volatility of the UK economy continues as sterling fell earlier last year to its lowest level since 1985.
The survey, which has been carried out for the last 30 years by the Economist's Intelligence Unit compares the cost of a basket of over 150 goods across 133 cities around the world.
Singapore was once again the world’s most expensive city with a bottle of wine costing $23.68 (£19.11) on average, closely followed by Hong Kong and Zurich with wine costing $15.72 and $14.17 respectively.
At the bottom end, Almaty in Kazakhstan came in as the cheapest city, followed by Lagos and Bangalore with the price of a litre of unleaded petrol in each of the cities coming in at $0.49, $0.46 and $1.03.
New York was the only North American city to make it into the world’s most expensive cities coming in ninth whilst Los Angeles ranked in 11th, down from 8th last year.
However, whilst the fall may appear to make the cost of living in British cities cheaper in comparison to the rest of the world, it is likely that the gradual rise in prices of imported goods caused by a weak pound will mean that people will be unable to cash in on the decline.
Jon Copestake, editor of 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. But now rising import prices mean that British shoppers will notice higher levels of inflation, even as businesses potentially benefit from inbound retail tourism and cross border trade.”