World's Most Expensive Cities 2014: Angola’s Luanda Is Costliest City For Expats, Again; ‘Volatility In Accomodation Prices’ Counted As Factor

World's Most Expensive Cities 2014: Luanda in Angola is declared as the world’s most expensive city for the second year in a row, followed by N'Djamena, Chad, according to annual Mercer 2014 Cost of Living Survey.

The Mercer survey lists the most costly cities for expatriates based on a comparison of over 200 items per area. The items include basic necessities like housing, transportation, food, clothing, and other things like leisure or entertainment.

"Rankings in many regions were affected by recent world events, including economic and political upheavals, which resulted in currency fluctuations, cost inflation for goods and services, and volatility in accommodation prices," said Ed Hannibal, a partner for Mercer's mobility practice, courtesy of The Canadian Press.

Hannibal also explained, "While Luanda and N'Djamena are relatively inexpensive cities, they are quite costly for expatriates since imported goods come at a premium. In addition, finding secure living accommodations that meet the standards of expatriates can be challenging and quite costly as well."

Asian city Hong Kong sits in third place, followed by Singapore. Meanwhile, European cities also ranked high with Zurich and Geneva were placed fifth and sixth, respectively. Tokyo followed in seventh place. We can also see Bern, Moscow, and Shanghai in Mercer’s most expensive cities for expatriates.

In the Middle East, Tel Aviv, Israel is costs the most, followed by followed by Beirut, Dubai and Abu Dhabi.

Meanwhile, the stability of the US Dollar against other major currencies brought several cities at the top of Mercer’s list. New York, on the other hand, ranked 16th, the highest rank of any U.S. state, after the rental accommodations skyrocketed.

Brazil has the two costliest cities in South America: the Sao Paolo, followed by Rio de Janeiro.

In Canada, Vancouver surpassed Toronto as the most expensive city for the second year in a row. Montreal and Calgary still belong to the list.

On the other end of the stick, Karachi of Pakistan is the least expensive city for expatriates.