When the Bureau of Economic Analysis (BEA) released its annual Global Cost of Living report on Wednesday, it was complete misery for American travelers planning a trip to Denmark.
The 27th annual rankings show that Copenhagen overtook Tokyo as the most expensive city on the planet, resulting in a 10 percent increase in the cost of living for Danes in a year.
With a cost of living that was 22 percent higher than average, British pensionser would be hard-pressed to squeeze into a cab in Copenhagen.
“Tokyo was runner-up, while New York City was right behind as the third most expensive city,” said the study’s co-author, Joseph Goody of Oxford Economics.
“Looking at a basket of items – including gasoline, food, clothing, and services such as haircuts and newspapers – it is clear the U.S. share of the global cost of living has fallen over the past year, while other countries have lifted the price of their goods,” he added.
Tokyo, Bangkok, and Cape Town remained in second place, followed by Vienna, Singapore, Zurich, Los Angeles, Paris, London, and Stockholm. The cost of living in these cities averaged an 18 percent increase over a year ago.
The study also shows the monthly cost of tuition in the United States is rising faster than in Europe. The average tuition for U.S. colleges jumped 23 percent over the past decade. In contrast, the average EU average has increased just 4 percent over the same period.
But it’s not all bad news. The relative cost of living in Tokyo is near its all-time low, having fallen by 9 percent since 2014.