Oslo, Dublin and London most expensive cities in world - In a new report, the Union des banques suisses (UBS) illustrates that since the last edition in 2006, exchange rate developments have had a considerable impact on the listing of the most expensive cities in the world. According to the “Prices and Earnings” study of 2006 but updated in light of the exchange rate and inflation changes in 2007, cities in the USA have become very attractive. The study focuses on a basket of twenty-two goods and services assessed according to consumer behaviour in western Europe, as well as on data based on earnings, taxes and working hours. The sharp depreciation in the US dollar has therefore made New York, generally known for its high prices, as “a destination that is even more affordable for European purchasers”. Prices in London are 26% more expensive. “Shopping in the USA is now an interesting option” for the French, Spanish or even the Germans, who go there, points out the study. In contrast, prices in eurozone cities are taking off. Oslo is the most expensive city in the world, followed by Copenhagen and London. Barcelona, on the same level as Hong Kong in 2006, is now 22% more expensive. Dublin has risen in three years from the 13th to the 14th most expensive city, ahead of Zurich (5th), Stockholm (6th) and Helsinki (7th) and Geneva (8th). The least expensive cities are now in Southern Asia and South America: Buenos Aires is almost as expensive as Mumbai. If rents are included, the list is quite different: New York goes up to fifth most expensive city after London, Oslo, Dublin and Copenhagen. Inflation trends also change things. In Venezuela inflation has become worrying (a rise of almost 37% in accumulated value since 2006) and Caracas is now as expensive as Singapore. There are no surprises when it comes to earnings - they are more stable than inflation. Earnings in Oslo, Copenhagen and Zurich are still better (net salary). The depreciation of the dollar linked to inflation means that Chicago goes down eleven places. New Yorkers are now only in 13 th place for net salaries. Average earnings in Jakarta are the lowest of all the cities studied, after Delhi, Manila and Mumbai. Compared to those of the five highest placed European cities, earnings in Jakarta are 95% lower. In terms of purchasing power (excluding rent) wage earners in Zurich, Geneva, Dublin and Luxembourg have the highest level of purchasing power for the number of hours worked. For example, an hour of work done in Dublin gives purchasing power that is 28% higher than that in Amsterdam, while in London purchasing power is 37% less than in Zurich.