Hamburg is set to add a second dubious distinction to its name, the OECD has announced, as the cost of living in the German city soared to the world’s most expensive.
The Organisation for Economic Co-operation and Development (OECD) cited European currency woes and labour shortages for the rise.
Hamburg is used by Porsche, Siemens and John Deere, so it’s not hard to see why German businesses have to pay some of the highest wages in the world.
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However, productivity in Germany and in Germany’s neighbour, Austria, means that wages don’t necessarily have to be higher than in other European countries to boost the economy.
Consumer prices in Hamburg rose 1.2% last year, despite the cost of living having risen by 1.1% in other European cities, according to the OECD.
In addition, firms and households in Germany are grappling with rising rents, expensive public transport and other infrastructural issues, which also causes them to pay more for products.
The Czech Republic also held a position on the top 10 most expensive cities list for the first time, coming in at number eight behind Zurich.
Budapest, Stockholm, Oslo, Geneva, Geneva and Hong Kong rounded out the top five.