World's 10 cheapest cities to live in 2012

The Economist Intelligence Unit (EIU) has released the latest list of the top ten cheapest cities of 2012, determined on the basis of average cost of living.

In its latest Worldwide Cost of Living (WCOL) survey, EIU compared all cities to the base city of New York, which has an index set at 100, and found Asian and Middle Eastern cities dominating the top-ten list.

The list retains eight of the ten cities from the previous year's survey. Manila and Tunis have been replaced by Muscat and Kathmandu in the new list.

A colonial-era building undergoing restoration in Karachi 

1. Karachi, Pakistan

With a score of 46, as compared to the base city of New York, Karachi is world's cheapest city. Karachi was featured in EIU's WCOL survey last year as well.



2. Mumbai, India

With a score of 52 on the index, Mumbai, the financial capital of India, is the second most cheap city to live in. Mumbai was also listed as one of world's least expensive cities in EIU's Worldwide Cost of Living 2011 report.



3. Tehran, Iran

With 54 points on the index, Tehran is ranked third cheapest city in the world.



4. New Delhi, India

The Indian capital is ranked fourth cheapest city with 56 points on the index. In picture: Muslims attend Friday prayers at the Jama Masjid (Grand Mosque) in the old quarters of Delhi Oct. 1, 2010.



5. Jeddah, Saudi Arabia

Jeddah rounds off the top five cheapest city in the world. The city was listed in EIU's WCOL report 2011 as well.

Tenzing Hillary Airport in Lukla, northeast of Kathmandu.

6. Kathmandu, Nepal

At 58 points on the index, Kathmandu features on this year's list. The city was not listed in EIU's WCOL report 2011.



7. Panama City, Panama

Panama City is tied with Kathmandu at 58 points on the index of world's cheapest cities.



8. Algiers, Algeria

Algerians cross the bay of the Mediterranean port of Algiers July 5, 2007. With an index score of 59, Algiers ranks at No. 8 on the EIU's top ten cheapest cities' list.



9. Dhaka, Bangaladesh

Dhaka scored 61 on the index in EIU's survey.



10. Muscat, Oman

A tourist's reflection is caught in the mirror of an antiques shop in Mattrah Souq, the oldest market in Oman, in the capital Muscat Oct. 28, 2007. With a score of 63 on the index, Muscat is tenth cheapest city in the world, as per EIU's WCOL survey 2012.


(Source: ibtimes.com)