Hong Kong has now become the world's ninth most expensive location for expatriates this year - up 17 places from last year's 26th position - according to an annual day-to-day cost-of-living survey by London-based human resource consultancy ECA International.

Around Asia, Hong Kong ranked third, following Shanghai and Beijing.

The report took the prices of a basket of over 160 goods and services between March and September into consideration. But housing factors were excluded because international employers usually count the housing allowance separately.

The city's cost of living was mainly pushed up by the strength of the currency, ECA's Asia Regional Director Lee Quane said. As the Hong Kong dollar was pegged to the strong US dollar, it was largely strengthened against other regional currencies, he said.

In turn, Seoul dropped from No 8 to No 10, while Tokyo slipped from 10th to 12th place, Yokohama from 18th to 26th and Nagoya from 20th to 27th.

During the period the average rise for Hong Kong's Consumer Price Index (CPI) was 2.4 percent, a relatively low level. Usually, price rises higher than 3 percent indicate ongoing inflation.

Since 2007, Hong Kong has risen from 79th in the world to the current ninth position, mainly because of the rise of Asian economies in recent years and depreciation of the currencies of old advanced economies, Quane said.

However, the rise in the cost of living would not affect the competitiveness of Hong Kong as it had a large talent pool and easy access to the vast mainland market, Quane said.

Shanghai has overtaken Seoul as Asian's most expensive city for expats, at No 7 in the world ranking. Groceries, clothing, dairy produce and electrical goods in Shanghai were more expensive than in Hong Kong. However, meat and fish, fruit and vegetables, eating out and motoring were cheaper than in Hong Kong, according to the report.

Among other mainland cities, Beijing ranks eighth globally, and Guangzhou and Shenzhen also squeezed into the list of the top 20 most expensive cities.

Macao became Asia's biggest gainer this year, having risen 70 places to No 29 in the global list. Its rise was greatly fueled by currency factors and big economic gains during the past year, according to the report.

Topping this year's list were four Swiss cities - Zurich, Geneva, Bern and Basel.

luisliu@chinadailyhk.com

(HK Edition 12/11/2015 page7)