Top 10 Most Expensive Cities in 2011

By Daniel Tovrov | July 13 2011 3:24 PM

Photo: Reuters

#1 Luanda, Angola

Luanda is the largest city in Angola. It sits on the Atlantic coast of the country and is one of the fastest growing economies in the world. There are widespread construction projects in the city, many of them housing projects contracted to Chinese companies. Most of the rebuilding is sponsored by Angola's government.

Photo: Ray Tsang

#2 Toyko, Japan

Tokyo was #1 in 2009 and has been fluctuating between 1st and 3rd since 2003.

Photo: Rueters

#3 N'Djamena, Chad

Chadian women walk past fried locust sellers at a market in Chgoua in N'Djamena, the once war-torn capital of Chad.

Photo: Reuters

#4 Moscow, Russia

Russia's President Medvedev delivers a speech during a military parade in Red Square on Victory Day in Moscow

Photo: wiki commons

#5 Geneva, Switzerland

Fifth in 2010. Fourth in 2009.

Photo: Reuters

#6 Osaka, Japan

Passers-by walk under advertisements in the Dotonbori shopping and amusement district in Osaka

Photo: Reuters

#7 Zurich, Switzerland

Smoke billows from chimneys over the rooftops of downtown Zurich after the coldest night of this winter.

Photo: Reuters

#8 Singapore, Singapore

The skyscrapers of Singapore's central business district are pictured before Earth Hour

Photo: Reuters

#9 Hong Kong

Participants compete in a dragon boat race to mark the annual Tuen Ng or Dragon Boat Festival in Hong Kong

Photo: Reuters

#10 São Paolo, Brazil

Brazil's Ronaldo holds up a Brazilian flag during his last soccer match with the national squad against Romania in Pacaembu Stadium in Sao Paulo

The city with the highest cost of living in the world is not New York or Tokyo, but Luanda, Angola.

Those complaining about the high rent prices in their home cities may want to look at Mercer's 2011 ranking of the world's most expensive cities.

Surprised that the Angolan capital is at the top? Well, 2011 is actually the second year in a row that Luanda was deemed the most expensive locus, jumping to first in 2010 after being unranked in 2009.

The sudden lift, which was experience by other African cities on the list, such as Livrevilla, Gabon and Victoria, Seychelles, is a good indicator that a country once ravaged by war and instability is on the rise.

The consulting company used cost measurements primarily based on two factors. The first was the local currency's strength compared to the U.S. dollar over a one-year period. The second was the rise (or fall) of the cost of goods in a city over a one-year period.

The US dollar has weakened significantly against some currencies, including the Singapore dollar, the Brazilian real, and the Malaysian ringgit. So the Cost of Living indices for US expatriates will continue to increase to reflect the need to use more US dollars to buy the same number of host currency units, Mercer said in a statement.

Click through to see the Top 10.

The United States didn't even break the top 25. New York was the most expensive city in America, which should come as a surprise to no one, except maybe people living in San Francisco. New York was 32nd internationally.