The 2022 half yearly global rankings are out. Sydney’s cost of living? 47th overall.
These indices are relative to New York City (NYC), which means that for New York, each index is 100%.
Definition of cost-of-living excl. rent is comprised of goods prices, including groceries, restaurants, transportation and utilities.
For example, a city with an index of 120 means it is 20% more expensive than New York.
Sydney’s is 77 which means it is 23% less expensive than New York.
Sydney’s rent index is 50 i.e., 50% less expensive than New York. Tell that to Sydney’s struggling would-be renters!
Combining these two critical measures results in a Sydney index of 64, i.e. 36% better off than New York.
Despite our current challenges, Sydneysiders are OK, living in one of the most beautiful cities in the World based on Sydney’s cost of living, among other attributes.
About Cost of Living Indices.
These indices are relative to New York City (NYC). Which means that for New York City, each index should be 100(%). If another city has, for example, rent index of 120, it means that on an average in that city rents are 20% more expensive than in New York City. If a city has rent index of 70, that means on average rent in that city is 30% less expensive than in New York City.
Cost of Living Index (Excl. Rent) is a relative indicator of consumer goods prices, including groceries, restaurants, transportation and utilities. Cost of Living Index does not include accommodation expenses such as rent or mortgage. If a city has a Cost of Living Index of 120, it is estimated to be 20% more expensive than New York (excluding rent).
Rent Index is an estimation of prices of renting apartments in the city compared to New York City. If Rent index is 80, it is estimated that price of rents in that city is on average 20% less than the price in New York.
Groceries Index is an estimation of grocery prices in the city compared to New York City. To calculate this section, weights of items in the “Markets” section for each city are used.
Restaurants Index is a comparison of prices of meals and drinks in restaurants and bars compared to NYC.
Cost of Living Plus Rent Index is an estimation of consumer goods prices including rent comparing to New York City.
Local Purchasing Power shows relative purchasing power in buying goods and services in a given city for the average net salary in that city. If domestic purchasing power is 40, this means that the inhabitants of that city with an average salary can afford to buy on an average 60% less goods and services than New York City residents with an average salary.
