Another island, Singapore is a non-mover in fourth place with an index score of 79.1.

Alcohol is considered a luxury item and is extortionately expensive, with a bottle of wine costing over $23 (£18). Meanwhile renting a one-bedroom apartment in the city centre costs an average of almost $2,930 (£2.3k) per month, and buying a new car is more expensive in Singapore than in almost any other country due to the government saddling purchases with taxes and tariffs as a form of traffic control. Motorists must also pay to drive according to the route they take and time of day.

To combat rising costs and to celebrate the 60th anniversary of independence, Singapore is giving each household the equivalent of $596 (£473) in spending vouchers this year, with citizens over 60 getting double that. There’ll also be an income tax rebate of up to $149 (£118). And there's more good news: inflation has just softened to its lowest rate since February 2021.

The world’s most expensive countries to live in 2025