Analytics

Prices and living expenses: Is Tashkent one of the most expensive city in the world?

Experts from the Center for Economic Research and Reforms Malika Jumaniyazova and Bakhtishod Khamidov gave an interview on how the ranking of "The most expensive cities in the world" is formed.

According to CERR experts, hundred types of products are selected in one city to calculate the cost of food compared to other cities. It should be noted that the price of the product is affected by an infinite number of factors. Therefore, it is wrong to link prices with the level of development.

So, are food prices in Tashkent more expensive than in the capitals of the richest countries?

Can Tashkent be considered one of the cheapest cities in the world based on the prices of the 10 cheapest products?

Are food prices in Tashkent more expensive than in the capitals of the richest countries? Is it possible to make Tashkent one of the cheapest cities based on the 10 cheapest food prices in Tashkent?

“The UK’s Economist Intelligence Unit publishes an annual WCOL (Worldwide Cost of Living) ranking of the cost of living in different parts of the world. It takes into account the prices of 160 most important goods and services (food and non-food) in 133 cities around the world.

According to the results of the analysis in 2020, Tashkent ranked 132nd out of 133 cities in Uzbekistan on the food price index. Or in other words, one of the cheapest cities”, said Malika Jumaniyazova, an expert at the Center for Economic Research and Reform.

"According to a World Bank study, the minimum wage is not the same in all countries relative to average incomes. For example, in countries like Denmark and the Netherlands, this is set at 40-45%. In contrast, in countries like Slovakia and Latvia, this is set at 7-8%. The difference between the two is huge. This means that other factors also affect the determination of the minimum wage. From a similar analysis, countries like Latvia and Slovakia would be upset. Because some other factors influenced the minimum wage which was set lower than the average income. It is necessary to analyze the developed and developing countries separately”, said Bakhtishod Khamidov, an expert at the Center for Economic Research and Reform.

The results of prices research around the world show that this statement is true. For example, according to Numbeo.com, Tashkent ranks 135th out of 138 cities in the food price index, or in other words, one of the cheapest cities.