From the Mercer cost of living survey http://www.mercerhr.com/pressrelease...ontent/1142150

Mercer’s survey covers 144 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. It is the world’s most comprehensive cost of living survey and is used to help multinational companies and governments determine compensation allowances for their expatriate employees.

Europe

London remains the most expensive city in Europe, with a score of 120.3. “Steep accommodation and transport costs together with the appreciation of the pound against the US dollar have contributed to the city’s high ranking,” said Marie-Laurence Sepede, Research Manager at Mercer. Scores are based on the cost of living for expatriates who are likely to stay in Central London, where accommodation is more expensive. Other UK cities are less costly, with Glasgow in 40th position and Birmingham in 47th place (scores 87.5 and 85.8).

Moscow is the second most expensive city in Europe ranked in 4th position (119), followed by Geneva in 6th place (113.5) and Zurich in 7th place (112.1). Other high-scoring cities include Copenhagen ranked 8th (110), Oslo, which has moved up from 15th to 10th place due mainly to the appreciation of the Norwegian Krone against the US dollar, and Milan ranked 11th (104.9).

Budapest in Hungary ranks in 24th position (score 93.3) and is the costliest city of the countries that joined the EU last year. “Many cities in the new EU accession countries have risen sharply in the rankings this year, as they make strides to bring their economic infrastructure up to EU standards. Central and Eastern Europe are becoming increasingly attractive for investment by multinationals,” commented Ms Sepede. Warsaw, Prague and Bratislava have all risen by more than ten places.

Bucharest in Romania is the least expensive European city in 103rd place (71.4), followed by Limassol in Cyprus ranked 100th (71.9).