The world's most expensive cities

European Business Forum, Summer, 2003

Tokyo has replaced Hong Kong as the world's most expensive city, in the latest cost of living survey, compiled by Mercer Human Resource Consulting. Moscow is in second place, followed by Osaka, which has moved up three places since last year.

The authors of the survey, which includes 144 cities, said the latest rankings were influenced by the fall of the US dollar against the euro, high inflation and the recession in many countries.

The annual figures, based on the cost of living and quality of life, are used by businesses to work out how much expat employees should be paid.