Moscow most expensive city

Moscow is the world's most expensive city to live in for the third year in a row, a cost of living survey has found.

London has dropped from second to third on the list compiled by human resources firm Mercer, replacing Seoul in South Korea, which now stands at number five.

Tokyo has climbed to the second spot from fourth place last year, while Oslo takes this year's fourth place.

The fall of the dollar has led to several US cities dropping down the chart, with falling prices contributing to a lower overall cost of living.

The only North American city to feature in this year's top 50 is New York in 22nd place, declining seven places in one year.

Los Angeles has moved from 42nd to 55th place, Miami from 51st to 75th place and Washington, DC, from 85th to 107th place.

According to the list, Asuncion in Paraguay is the least expensive city in the ranking for the sixth year running.

Yvonne Traber, research manager at Mercer, said: "Current market conditions have led to the further weakening of the US dollar which, coupled with the strengthening of the Euro and many other currencies, has caused significant changes in this year's rankings."

She added: "Although the traditionally expensive cities of Western Europe and Asia still feature in the top 20, cities in Eastern Europe, Brazil and India are creeping up the list. Conversely, some locations such as Stockholm and New York now appear less costly by comparison."

The research also confirms the global trend in price increases for certain foodstuffs and petrol, the company said, although this is partly balanced by decreasing prices for certain commodities such as electronic and electrical goods.

Mercer's survey covers 143 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.

Multinational companies and governments use the results to determine compensation allowances for their expatriate employees.