New Delhi: New Delhi is India's most expensive city for expatriates but ranks in the 228th place in the global list, according to the findings of the latest 'Cost of Living' survey by ECA International.
Despite high inflation in India, the considerable depreciation of the rupee over the year has led to Indian locations falling even further down the ranking.
New Delhi, has fallen 14 places. It is followed by Mumbai - which has fallen 9 positions to rank 237th globally - and Bangalore, which has moved down from 241 to 244 spot this survey.
The Venezuelan capital, Caracas, is currently the most expensive place in the world for expatriates. Prices for items in ECA's shopping basket there have gone up by over 60 percent on average since last year.
Luanda, a city in Angola was ranked in the second place and Norway's capital Oslo in the third place.
South Sudan's Juba was ranked fourth in the list while Norway's Stavanger was placed in the fifth position.
"Since 2010, India's economy has decelerated notably," Steven Kilfedder, Manager, Cost of Living and Remuneration Services at ECA International said.
Kilfedder further added that the recent slump in the rupee threatens further upward pressure on prices and could destabilise the economy. Companies sending staff into and out of the country need to monitor the situation closely.
"While assignees in India are likely to have seen their purchasing power increase due to the effect of exchange rate changes, employees being sent on assignment out of the country could well find theirs reduced," he added.
To ensure that their employees' spending power is not compromised while on international assignment, multinational companies will often include a cost of living allowance in their pay package.
Living costs for assignees are affected by inflation, availability of goods and exchange rates, all of which can have a significant impact on assignee remuneration packages.
To assist companies with their calculations ECA carries out two Cost of Living Surveys per year, comparing a basket of like-for-like consumer goods and services commonly purchased by assignees in 440 locations worldwide.
First Published: Thursday, December 5, 2013, 20:09