World's most expensive cities: The clean environment, majestic Merlion statue, and towering modern-day architectures come with a price.

Singapore is now declared as the most expensive city in 2014, according to the Economist Intelligence Unit's (EIU) latest Worldwide Cost of Living survey.

Dethroning Tokyo from the number one spot, Singapore tops the 131-city survey because of its high currency appreciation, continuous inflation, and unexpected high cost of living. In fact, the city-state is the most expensive place in the world to buy clothes.

"Car costs have very high related certificate of entitlement fees attached to them, which makes Singapore significantly more expensive than any other location when it comes to running a car," according to the bi-annual report.

"As a result, transport costs in Singapore are almost three times higher than in New York. In addition, as a city-state with very few natural resources to speak of, Singapore is reliant on other countries for energy and water supplies, making it the third most expensive destination for utility costs."

2013 Most expensive city Tokyo tied with Melbourne, Geneva and Caracas in sixth place due to weaker yen, claims EIU.

Here is the complete list for the most expensive cities:
1. Singapore
2. Paris
3. Oslo, Norway
4. Zurich, Switzerland
5. Sydney
6. Caracas, Venezuela
6. Geneva, Switzerland
6. Melbourne
6. Tokyo
7. Copenhagen, Denmark

When it comes to the cheapest cities to live in, India gains the reputation as Mumbai is ranks first, while the Indian capital, New Delhi is third.

The EIU says that India has the potential for future growth. However, it has one of the largest populations “with the untapped potential within the economy."

"Income inequality means that low wages proliferate, driving down household spending and creating many tiers of pricing that keep per capita spending low. This, combined with a cheap and plentiful supply of goods into cities, as well as government subsidies on some products, has kept prices down, especially by Western standards."

On the flipside, here is the list of the least expensive cities:
122. Riyadh, Saudi Arabia
123. Jeddah, Saudi Arabia
124. Panama City, Panama
124. Bucharest, Romania
126. Algiers, Algeria
127. Damascus, Syria
127. Kathmandu, Nepal
129. New Delhi, India
130. Karachi, Pakistan
131. Mumbai, India

The EIU conducts the Worldwide Cost of Living survey twice a year, wherein it compares 400 individual prices across 160 products and services in 131 cities. The products include food, drink, clothing, household supplies and personal care items, home rents, transport, utility bills, private schools, domestic help and recreational costs.