Two Swiss cities in cost of living top three

Swiss cities Zürich and Geneva remain second and third in a UBS global cost of living ranking, while Oslo in Norway is the most expensive city in which to live.

Published: 17 August 2011 14:48 CEST

Two Swiss cities in cost of living top three

The annual “Prices and Earnings“ study by Swiss bank UBS shows the effects of currency shifts and compares prices and earnings in 73 cities worldwide for 122 goods and services.

After Oslo, Zürich and Geneva come Copenhagen, Stockholm and Tokyo after the study was updated to reflect the present currency situation.

The highest salaries are earned in Zürich, Geneva and Copenhagen. However, Zürich, Sydney and Luxembourg have the greatest domestic purchasing power based on their net wages, according to the study:

“Comparing domestic prices for a universal basket of goods against the domestic wage level allows us to examine the difference in relative purchasing power,” said UBS.

“Therefore people working in Zürich, who lead our index, can afford the most domestically in relation to the other cities surveyed.”

American cities cost lower than in previous years, UBS said, with New York slipping from sixth to 14th most expensive location since 2010.

UBS publishes an in-depth study on prices and earnings every three years, updating it annually.  In 2010, and again this year, UBS researchers adjusted the most important indices from the 2009 survey for inflation, GDP growth and changes in foreign exchange rates.

This year UBS launched an iPhone app, which is available for free download. Users can participate in data collection about their city for next year’s survey.

Website: www.ubs.com/pricesandearnings

Member comments

Become a Member to leave a comment.

The onset of winter will raise concerns for many in Germany about the cost of heating their homes, with memories of last year’s rocketing prices and concerns over domestic gas supply resurfacing.

But, compared to last year, the energy prices have now largely stabilised, though they are still higher than in 2021.

The stabilisation in prices is partly thanks to the government’s energy price cap which came into force earlier this year to cushion the blow of soaring energy prices by capping electricity costs at 40 cents per kilowatt-hour and natural gas at 12 cents.

The federal government plans to maintain this cap until the end of April, though this could be extended even longer, if necessary.

How high are heating costs expected to go this year?

For the current year, experts from co2online expect somewhat lower heating costs than last year.

Heating with gas, for example, is expected to be 11 percent cheaper in 2023 than in 2022, costing €1,310 per year for a flat of 70 square metres.

The cost of heating with wood pellets will drop by 17 percent to €870 per year, and heating with heating oil will cost 19 percent less and amount to €1,130.

According to co2online, the costs for heating with a heat pump will drop the most – by 20 percent to €1,1105. The reason for this, according to co2online, is a wider range of heat pump electricity tariffs.

Tax hikes in January

Starting January next year, the government will raise the value-added tax on natural gas from seven to nineteen percent.

Alongside this, the CO2 price, applicable when refuelling and heating, will also increase.

According to energy expert Thomas Engelke from the Federal Consumer Association, these increases will mean that a small single-family household with three or four people that heats with gas would then pay about €240 more per year for gas.

“That’s a lot”, he said.

Another additional cost factor to consider is that network operators also want to raise prices. However, the federal government plans to allocate €5.5 billion to cushion this increase for consumers as much as possible, so how such cost increases will ultimately affect consumers is currently hard to estimate.

Overall, it can be said that, from January, consumers will have to brace themselves for higher energy costs, even though massive increases are currently not expected.

Consumer advocate Engelke advised customers to closely examine where potential savings could be made this upcoming winter: “Those who are now signing a new gas or electricity contract should inform themselves and possibly switch. Currently, you can save a few hundred euros. It’s worth it. On the other hand, you should also try to save as much energy as possible this winter.”