Chinese cities' living costs lower: report

Living costs in Shanghai and Beijing are relatively lower than other major cities after a comparison of 71 cities globally, with food, clothing and services remaining comparatively inexpensive, said an industry report.

Shanghai ranked No. 60 on the price index list at US$1,262 after surveying the costs of a weighted shopping basket geared to Western European consumer habits containing 122 goods and services, said a UBS AG report.

On the wage index list, China's economic hub took the No. 59 spot, which was based on effective hourly wages of 14 professions, weighted according to distribution, it added.

Beijing, a new entry in UBS' "Prices and Earnings" study was ranked slightly behind Shanghai in both prices and wage comparisons.

China's capital was ranked at 62nd in price level while coming in at No. 65 on wages.

UBS, a Swiss banking and financial service group, attributed the low prices in the two cities to the yuan's relatively low foreign exchange rate, despite its appreciation last July.

The relative low prices for food, clothing and services helped the two cities to compete with other cities.

The price of surveyed goods and services of Shanghai was around US$274, almost one-third that of Tokyo, the most expensive city in the survey.

Prices of good-quality clothing in department stores in Shanghai were US$320 for women and US$520 for men, against the global average of US$505 for women and US$668 for men.

Oslo, where the price of 122 goods and services surveyed was US$3,049, London and Copenhagen are the three most expensive cities in terms of living costs in the 71 global metropolises.

Source: Xinhua