* Today's exchange rate: 1 British Pound Sterling = $1.91 U.S. Dollars *
Reuters: Oslo and London are the world's most
expensive cities, while Zurich and Geneva residents have the
highest buying power, according to a report released on
Wednesday.
Europe dominates the list of 71 cities compiled by Swiss
bank UBS, while Asian cities -- including Kuala Lumpur and
Mumbai -- are among the cheapest places to live, based on the
cost of a basket of 122 goods and services.
Oslo maintained its top position from 2005, while London
rose three places to second.
Copenhagen, Zurich and Tokyo round out the top five, with
New York in seventh place globally.
But London and New York are the most expensive cities when
housing costs are included, said the 52-page report.
"It's no wonder that their residents often tolerate extreme
commutes in order to find affordable housing," it said.
North American workers earn the highest wages, closely
followed by Western Europe. But European net earnings are
significantly lower because of higher taxes and social security
contributions.
Total pay packets were biggest in Copenhagen, Oslo and
Zurich -- but residents of the Nordic cities lose out when tax
is taken into account.
"After statutory deductions, people living in the Swiss
cities, Dublin and Los Angeles have the most left over from
their wages," said the report.
London rose from 15th place to sixth in the gross wages
ranking, but was only 20th in domestic purchasing power.
Kuala Lumpur was the cheapest city, followed by Mumbai,
Buenos Aires and Delhi. Delhi was also among the bottom five
cities in both the wages and purchasing power rankings.
Cities in eastern Europe and China were among the least
expensive, while Asian cities have the longest working hours,
with Seoul workers averaging 50.2 hours a week.
Workers in Asia also have the fewest vacation days, on
average 12 per year, compared to a global 20 days.
"Western Europe, by contrast, is very attractive for
employees who value their leisure time," the report added.