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London is the most expensive city in the world, with soaring rent and petrol costs pushing the cost of living well above New York, Paris and Sydney, according to new figures.
The price of everyday essentials such as groceries, accommodation and travel expenses are rocketing in the English capital, further squeezing hardworking families who still earn thousands less in real terms than when David Cameron became Prime Minister in 2010.
The figures come from the cost of living experts Expatistan.com, who produced their report after comparing information from almost 200,000 users around the world to calculate average prices in 1,600 cities.
Cost of living: London is now the most expensive place to live in the world, with the price of petrol, rent, groceries and electronics pushing the capital above Oslo, Geneva and New York.
The website, which published its findings in the Sydney Morning Herald, found the typical price of a coffee in London to be £2.86, over 60 per cent more expensive than Rome, where a cappuccino can typically be purchased for little over £1.
In terms of electronics, the only city more expensive than London was Tokyo, with New York among the cheapest places to pick up a 16GB iPod Nano, at around £92, compared to £130 in London.
And if your budget stretches as far as the occasional luxury, there is nowhere in the world more expensive to buy cinema tickets than London, with the price of two admissions averaging £22, compared to just £14 in Sydney and only £10 in Singapore.
The typical cost of a litre of petrol in London is £1.40, more than double the price of fuel in Los Angeles, where a litre can typically be purchased for just 62p.
Soaring: The price of everyday essentials such as groceries, accommodation and travel expenses, is rocketing in London, further squeezing hardworking families who still earn thousands less in real terms than in 2010
And in terms of rent, a property in London will set you back over £2,500 a month, compared to just £1,365 in Rome, Italy, £1,242 in Toronto, Canada and only £950 in Wellington, New Zealand.
The rental prices are based on 85 metres of furnished accommodation in an area of the city where young, educated, employed members of the expat community typically live.
The figures come just days after John Cridland, director general of the CBI lobby group, said UK employers must bring the ‘prolonged squeeze’ on workers’ wages to an end, to help hardworking families who continue to earn around £1,350-a-year less in real terms than when David Cameron became Prime Minister in May 2010.
Decline: When adjusted for inflation, average earnings have fallen from just over £500-a-week when David Cameron became Prime Minister in May 2010, to just over £480-a-week in May 2013
A prolonged squeeze: Percentage pay increases have been outstripped by rising inflation since May 2008
According to the Office for National Statistics, the average national wage in 2008 was £26,137, compared with £27,174 today.
When adjusted for inflation and the rising cost of living, that amounted to a 13.8% fall in real terms.
– Daily Mail