Beijing now more costly than London
London is still among the 25 most expensive cities in the world but has been overtaken by rising Asian powerhouses such as Beijing and Shanghai.This summer's Olympics host ranks 25th in a cost of living analysis of 214 cities by consultancy Mercer, down seven places from last year after gains by a number of Asian and Australian cities, including Melbourne.
Tokyo is the world's most expensive city, followed by Angolan capital Luanda and Osaka in Japan.
With Mercer's findings based on costs experienced by an American visitor, the weaker pound against the US dollar drove the decline in London's position.
Birmingham moved in the opposite direction, jumping 17 places to 133rd and overtaking Aberdeen (148) and Glasgow (161) after both Scottish cities fell. Belfast is still the UK's least expensive city in the poll, but jumped 13 places to 165th place.
Mercer's research showed average rent for a luxury, unfurnished two bedroom apartment in London is one of the highest in Europe at £2,800 per month, compared with £1,925 in Paris and £1,506 in Rome.
Cinema-going is also an expensive activity in the capital, with admission costing an average of £12, nearly twice the price of tickets in Rome, Madrid and Berlin.
Mercer's UK head of data and product services, Milan Taylor, said: "Despite price increases on goods and services most UK cities moved down in the ranking this year, following the loss in value of the British pound against the US dollar.
"However, Birmingham and Belfast bucked the trend, moving up mainly because rental costs for expatriates increased a fair bit and price increases in these cities were higher than in say London and Glasgow."
London is still more expensive than other leading tourist cities, including New York, in 33rd place, Paris - which fell 10 places to 37th - and Rome, which has fallen to 42nd.
Mercer's research showed average rent for a luxury, unfurnished two bedroom apartment in London is one of the highest in Europe at £2,800 per month, compared with £1,925 in Paris and £1,506 in Rome.
Cinema-going is also an expensive activity in the capital, with admission costing an average of £12, nearly twice the price of tickets in Rome, Madrid and Berlin.
Mercer's UK head of data and product services, Milan Taylor, said: "Despite price increases on goods and services most UK cities moved down in the ranking this year, following the loss in value of the British pound against the US dollar.
"However, Birmingham and Belfast bucked the trend, moving up mainly because rental costs for expatriates increased a fair bit and price increases in these cities were higher than in say London and Glasgow."
London is still more expensive than other leading tourist cities, including New York, in 33rd place, Paris - which fell 10 places to 37th - and Rome, which has fallen to 42nd.
© 2013 Press Association