Euro 'pushes cities up cost league'

High roller: Paris has skated up the cost-of-living league

The European single currency's strong performance has raised the cost of living in many European cities, according to a new survey.

With the euro climbing almost 40% against the US dollar since February 2002, European cities like Milan and Paris have surged up the cost-of-living table, produced by Mercer Human Resource Consulting.

But Tokyo dethroned Hong Kong as the world's most expensive city in the survey of 144 urban areas around the globe, which compared the cost of about 200 items.

EUROZONE SURGE

Milan was 63rd, now 17th

Dublin was 73rd, now 21st

Paris was 74th, now 23rd

Yvonne Traber, spokeswoman for Mercer, said: "The strengthening of the euro has pushed prices up in EU cities, making them expensive for overseas visitors."

Milan, in Italy, shot from 63rd place in 2002 to 17 this year, while Dublin, in Ireland, rose from 73 to 21 and the French capital, Paris, was up from 74 to 23.

The findings are marketed mainly to multinationals to help determine how expatriate staff should be paid.

10 MOST EXPENSIVE CITIES

Tokyo

Moscow

Osaka

Hong Kong

Beijing

Geneva

London

Seoul

Zurich

New York

New York is set as the base city, with 100 points. Tokyo topped the table with 126.1 points, while Moscow was the most expensive European city with 114.5 points.

While Britain is not a member of the euro, high transport and housing costs helped make London the most expensive city in the European Union, with 101.3 points.

Housing, food, transportation and entertainment are among the item assessed in the survey.

Sitting at the bottom of the table was Paraguay's capital Ascunsion with 36.5 points.

Johannesburg, one-time holder of that dubious honour, moved up to 133rd place with 50.9 points.