The study, which looked at prices, earnings, and purchasing power in 73 major cities around the world between March 2009 and June 2010, pegged Toronto and Montreal as the eighth and ninth most expensive cities excluding the cost of rent.
I’m not quite sure why they excluded the cost of rent, seems like a pretty major exclusion to me! But alas, they must have had some reason. If you take rent into account, Toronto remains in the top ten and Montreal drops below many others.
Anyway, the list was:
6. New York
Paris was ranked 14th, Dubai was 16th and LA was 17th.
And Canadian cities weren’t always this high on the list. In the face of a soaring loonie, Toronto and Montreal have jumped 10 and 15 places since the last survey was released in 2009. That’s some jump! But it’s no surprise, compared with the USD the loonie has risen 20% in value.
Daniel Kalt, head of global economic research at UBS, stated to the Financial Post:
So if a consumer is still paying a dollar for a product even if that dollar has appreciated in value, then the consumer is now paying more for that product.
But, in due time, Canadians should benefit from the higher loonie as imports become increasingly cheap. I can’t wait!