Europe gets cheaper

Paris has dropped out of the world top 10 most expensive cities

The weak euro has dramatically cut the cost of living within the euro-zone, meaning that it is now as cheap to live in Munich as it is in Cairo or Abidjan.

It is also cheaper to live in Dublin than Lagos, as the weak euro has sent prices falling in most European cities, according to a new survey by the Economist Intelligence Unit.

The world's most expensive cities

1. Tokyo

2. Osaka

3. Hong Kong

4. Tashkent

5. Oslo

6. London

7. Libreville

8. Taipei

9. Zurich

10. Reykjavik

Paris, which was previously the most expensive city within the euro-zone, is now the world's 12th most expensive city, down from seventh place a year ago.

It is the first time it has fallen outside of the world top 10's most expensive cities since 1991.

London comes sixth in the table, making it the dearest city in the European Union to live in, up from ninth a year ago. The rise is due to the strength of sterling.

Oslo has leapfrogged Zurich to become the most expensive city in Europe, rising to fifth place, while Zurich has fallen to ninth place.

Tokyo remains the most expensive city in the world to live in, with the survey finding it 65% more expensive than New York, the baseline index for the report.

New York gets dearer

New York ranks as the world's 11th most expensive city, up from 12th place last year due to the recent appreciation of the dollar.

Tashkent, in Uzbekistan, enters the survey in fourth place, while Libreville, the capital of Gabon, which is ranked seventh most expensive city in the world.

The world's cheapest cities

1. Tehran

2. New Delhi

3. Quito

4. Mumbai

5. Karachi

6. Budapest

7. Manila

8. Kiev

9. Bucharest

10. Harare

And the Yugoslav capital Belgrade is now the 19th most expensive city in the world following last year's NATO airstrikes, rising from 105th position last year.

Looking at the cheaper cities to live in, Tehran comes in as the cheapest, just ahead of New Delhi.

Budapest is the cheapest European city to live in, with a cost of living about half the price of New York.

The EIU survey compares prices and products in 127 countries around the world to allow companies and government to calculate the cost of living for executives and families sent abroad.