Global corporations are increasingly concerned about the mobility of their employees as they move to various cities and countries.
In fact, planning, now more than ever, plays a crucial role in ensuring that professionals can adapt in their new environments. In this context, the international company Mercer presented the ranking called ‘Cities on International Cost of Living 2024’.
This study, which is used as a reference by companies around the world to develop compensation strategies in international assignments, this year revealed the increase in housing costs in numerous cities, as well as the impact of inflation.
The latter, without a doubt, would be limiting the mobility of talent and increasing operating costs.
“The cost of living crisis has had a significant impact on multinational organizations and their employees. It is important that organizations stay informed on cost of living trends and inflation rates and seek employee input on these issues to effectively manage their impact. High costs of living may require assignees to adjust their lifestyles, reduce discretionary spending and even struggle to meet their basic needs,” noted Yvonne Traber, Global Mobility Leader at Mercer.
TOP 5 most expensive cities
According to the ranking, the five most expensive cities are Hong Kong (China) in first place, followed by Singapore (Singapore), Zurich (Switzerland), Geneva (Switzerland) and Basel (Switzerland).
In sixth position is Bern (Switzerland), New York (United States) in seventh place, London (United Kingdom) in eighth place and Nassau (Bahamas) in ninth position. Closing this ‘top’ 10 is the city of Los Angeles (United States).
Singapore is the second most expensive city in the world.
Photo:iStock
The most expensive cities in Latin America
The ranking also pointed out the most expensive cities in Latin America, with Mexico City (Mexico) being the first, ranking 33rd globally. Second place went to San José (Costa Rica), in position 36 overall, followed by Montevideo (Uruguay), position 42 in the general list.
San Juan (Puerto Rico) stood out in sixth place, occupying position 48 in the global ranking, and closing the top 5 is Buenos Aires (Argentina), which occupied position number 77 in the general list.
Other notable cities on the list are Monterrey (Mexico), São Paulo, which rose 28 positions and remains the most expensive city in Brazil. Guatemala City also appears in the ranking (Guatemala), Rio de Janeiro (Brazil), Panama City (Panama), Santiago (Chile), Bogotá (Colombia) and Brasilia (Brazil).
It is important to mention that Bogotá rose 40 positions in this Mercer ‘ranking’, going from position 214 to 174.
For Zulma Santamaría, Senior Talent Consultant for Mercer Colombia, Central America and the Caribbean, Bogotá has become in one of the cities of Latin America with greater variations in the cost of living.
In fact, the expert highlighted that it is projected as one of the most expensive cities in the region.
“The increase in the value of services and products analyzed in our study may be impacted by the increase in the inflation rate, which in May was 7.16%, and the volatility of the price of the dollar. These elements are key to take into account to rethink strategies. compensation of the organizations, which must be aligned to this new reality of the city and the country,” Santamaría added.
The Colombian economy has faced significant challenges due to the increase in the inflation rate.
Photo:Courtesy IDT.
Increases in the cost of living in Bogotá
According to the report, the Colombian economy has faced significant challenges due to the increase in the inflation rate and fluctuations in the price of the dollar, phenomena that have directly impacted the costs of various basic products and services for citizens.
- Household supplies: This category showed an increase of 5%, driven mainly by increases in the prices of essential household products, such as cleaning supplies, which have continued an upward trend due to economic and supply adjustments.
- Personal care and cosmetics: recorded an increase of 4%, reflecting adjustments in the costs of personal hygiene and beauty products.
- Clothes and shoes: experienced a 7% increase, influenced by the increase in production costs, the increase in raw material prices and adjustments in global distribution channels, which have directly impacted prices to the final consumer.
- Home services: This category showed the most notable increase, with a 15% increase. Within this category, services such as Domestic Help experienced an increase of 12.07% by 2024, highlighting the demand and costs associated with home maintenance, as well as laundry and dry cleaning services.
- Public services: This category reported a marked increase of 9%, covering essential services such as electricity, water, telephone and internet. This increase is directly aligned with national inflation and reflects the adjustments necessary to maintain the quality and availability of these vital services.
- Food away from home: showed an increase of 6%, indicating adjustments in the prices of restaurants and food services outside the home, which have been affected by variations in production costs and changes in the dynamics of the local gastronomic market.
- Transport: Finally, this category registered an increase of 6%, reflecting adjustments in the costs associated with public and private transportation, influenced by variations in the prices of fuel and related services.
JOHANA LORDUY / Portfolio.
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*This content was made with the assistance of artificial intelligence, based on Portfolio information, and was reviewed by the journalist and an editor.
