{"id":161603,"date":"2026-09-30T16:17:43","date_gmt":"2026-09-30T10:47:43","guid":{"rendered":"https:\/\/www.thomascook.in\/blog\/?p=161603"},"modified":"2026-09-30T16:20:47","modified_gmt":"2026-09-30T10:50:47","slug":"cost-of-living-index-by-country-compare-living-expenses-around-the-world-2026-guide","status":"publish","type":"post","link":"https:\/\/www.thomascook.in\/blog\/forex\/cost-of-living-index-by-country-compare-living-expenses-around-the-world-2026-guide\/","title":{"rendered":"Cost of Living Index by Country: Compare Living Expenses Around the World (2026 Guide)"},"content":{"rendered":"
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No two countries charge the same price for everyday life. A coffee that costs $2 in Hanoi can cost $7 in Zurich, and a one-bedroom apartment renting for $300 in Cairo might command $3,000 in Manhattan. These gaps matter to expats, students, remote workers, retirees, and businesses planning a cross-border move, because a salary that feels generous in one country can barely cover rent in another. A cost of living index by country transforms these disparate price differences into a single comparable number, weighing housing, food, transport, healthcare and utilities against a common benchmark.<\/p>\n

This guide explains what the cost of living index measures, lists the most and least expensive countries in the world in 2026 using the\u00a0, and shows how to understand the world living index before relocating.<\/p>\n

What Is the Cost of Living Index?<\/strong><\/h2>\n

A cost of living index is a statistical tool that is used to compare how expensive it is to live in one city or region against a benchmark location, usually set at 100. Most global indices, including the widely cited Numbeo cost of living index, use New York City as that benchmark. A country scoring 60 is roughly 40% cheaper than New York, while a score of 120 means prices run about 20% higher. This relative-comparison method lets travellers, employers, and researchers line up dozens of countries on one consistent scale.<\/p>\n

How Cost of Living Is Measured<\/strong><\/h3>\n

Behind every index score sits a mix of recurring expense categories that most households actually pay for:<\/p>\n

    \n
  1. Housing (rent or mortgage costs)<\/li>\n
  2. Utilities (electricity, water, internet)<\/li>\n
  3. Groceries<\/li>\n
  4. Dining out<\/li>\n
  5. Transportation (fuel, public transit, vehicle costs)<\/li>\n
  6. Healthcare<\/li>\n
  7. Education<\/li>\n
  8. Entertainment and leisure<\/li>\n<\/ol>\n

    Because housing swings so dramatically between cities, most indices report a separate “cost of living plus rent” figure so movers can weigh rent’s impact on its own.<\/p>\n

    How the Cost of Living Index Works<\/strong><\/h2>\n

    Reading a cost of living index is straightforward once the benchmark is clear. Most cost of living indices use a reference point, often a major city or a global average and assign it a score of 100. Countries or cities are then measured against that benchmark.<\/p>\n

    An index score above 100 means a higher cost of living than the benchmark, while a score below 100 indicates a lower cost of living. For example, a country with an index value of 120 is typically around 20% more expensive than the benchmark, while a score of 80 suggests living costs are about 20% cheaper.<\/p>\n\n\n\n\n\n\n\n\n
    \n

    Index score <\/strong><\/p>\n<\/td>\n

    		Meaning <\/strong><\/td>\n<\/tr>\n
    40<\/td>\n\n

    About 60% cheaper than New York<\/p>\n<\/td>\n<\/tr>\n

    \n

    60<\/p>\n<\/td>\n

    		About 40% cheaper than New York<\/td>\n<\/tr>\n
    100<\/td>\n\n

    Roughly on par with New York (benchmark)<\/p>\n<\/td>\n<\/tr>\n

    \n

    120<\/p>\n<\/td>\n

    		About 20% more expensive than New York<\/td>\n<\/tr>\n
    150<\/td>\n\n

    About 50% more expensive than New York<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    But the index can\u2019t be assessed in isolation. Local wages and purchasing power, availability of housing, taxation and inflation can all have a huge impact on how affordable a country is to its residents. That\u2019s why the cost of living rankings are often viewed alongside purchasing power and quality-of-life indicators to give a fuller picture of what everyday affordability looks like.<\/p>\n

    These scores can be used by individuals, families, businesses and expats to compare the cost of living between countries and make informed decisions about moving, travelling, studying or expanding a business internationally.<\/p>\n

    Cost of Living Index by Country (Top Global Rankings)<\/strong><\/h2>\n

    According to Numbeo’s 2026 mid-year cost of living index by country, small island economies and Alpine nations dominate the top of the global cost of living rankings<\/strong>, while South Asian nations occupy the lowest positions on the living cost index by country.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    \n

    Rank <\/strong><\/p>\n<\/td>\n

    		Country <\/strong><\/td>\nCost of Living Index <\/strong><\/td>\nRent Index <\/strong><\/td>\nLocal Purchasing Power <\/strong><\/td>\n<\/tr>\n
    1<\/td>\nBermuda<\/td>\n135.8<\/td>\n108.2<\/td>\n\n

    101.3<\/p>\n<\/td>\n<\/tr>\n

    \n

    2<\/p>\n<\/td>\n

    		Cayman Islands<\/td>\n115.6<\/td>\n76.1<\/td>\n149.6<\/td>\n<\/tr>\n
    3<\/td>\nUS Virgin Islands<\/td>\n111.3<\/td>\n46.8<\/td>\n\n

    89.8<\/p>\n<\/td>\n<\/tr>\n

    \n

    4<\/p>\n<\/td>\n

    		Switzerland<\/td>\n110.7<\/td>\n51.5<\/td>\n170.6<\/td>\n<\/tr>\n
    5<\/td>\nSolomon Islands<\/td>\n102.3<\/td>\n19.5<\/td>\n\n

    12.6<\/p>\n<\/td>\n<\/tr>\n

    \n

    6<\/p>\n<\/td>\n

    		Bahamas<\/td>\n98.8<\/td>\n50.2<\/td>\n57.1<\/td>\n<\/tr>\n
    7<\/td>\nIceland<\/td>\n97.2<\/td>\n49.5<\/td>\n\n

    113.7<\/p>\n<\/td>\n<\/tr>\n

    \n

    8<\/p>\n<\/td>\n

    		Jersey<\/td>\n88.7<\/td>\n52.4<\/td>\n103.4<\/td>\n<\/tr>\n
    9<\/td>\nSingapore<\/td>\n87.7<\/td>\n73.1<\/td>\n\n

    105.5<\/p>\n<\/td>\n<\/tr>\n

    \n

    10<\/p>\n<\/td>\n

    		Norway<\/td>\n83.7<\/td>\n29.2<\/td>\n\n

    124.7<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Switzerland is the only country among the world’s ten most expensive to also post a triple-digit local purchasing power score, meaning local wages largely keep pace with high prices, a pattern worth checking before assuming an expensive country is unaffordable to live in.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    \n

    Rank <\/strong><\/p>\n<\/td>\n

    		Country <\/strong><\/td>\nCost of Living Index <\/strong><\/td>\nRent Index <\/strong><\/td>\nLocal Purchasing Power <\/strong><\/td>\n<\/tr>\n
    1<\/td>\nLibya<\/td>\n18.3<\/td>\n4.9<\/td>\n\n

    51.1<\/p>\n<\/td>\n<\/tr>\n

    \n

    2<\/p>\n<\/td>\n

    		India<\/td>\n18.9<\/td>\n4.3<\/td>\n76.4<\/td>\n<\/tr>\n
    3<\/td>\nPakistan<\/td>\n19.6<\/td>\n3.4<\/td>\n\n

    29.5<\/p>\n<\/td>\n<\/tr>\n

    \n

    4<\/p>\n<\/td>\n

    		Afghanistan<\/td>\n21.1<\/td>\n2.3<\/td>\n40.6<\/td>\n<\/tr>\n
    5<\/td>\nEgypt<\/td>\n21.6<\/td>\n4.0<\/td>\n\n

    21.8<\/p>\n<\/td>\n<\/tr>\n

    \n

    6<\/p>\n<\/td>\n

    		Madagascar<\/td>\n22.5<\/td>\n7.4<\/td>\n13.7<\/td>\n<\/tr>\n
    7<\/td>\nNepal<\/td>\n22.6<\/td>\n2.9<\/td>\n\n

    29.4<\/p>\n<\/td>\n<\/tr>\n

    \n

    8<\/p>\n<\/td>\n

    		Bangladesh<\/td>\n22.8<\/td>\n2.6<\/td>\n34.6<\/td>\n<\/tr>\n
    9<\/td>\nIran<\/td>\n22.8<\/td>\n8.0<\/td>\n\n

    30.3<\/p>\n<\/td>\n<\/tr>\n

    \n

    10<\/p>\n<\/td>\n

    		Rwanda<\/td>\n25.0<\/td>\n12.4<\/td>\n\n

    26.7<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Among countries with the lowest cost of living<\/strong>, India stands out by combining a low headline index with meaningfully higher local purchasing power than most of its neighbours, which is one reason it continues to attract long-stay expats and retirees working with modest budgets.<\/p>\n

    Cost of Living Comparison by Region<\/strong><\/h2>\n

    North America<\/strong><\/h3>\n

    The United States sits at a moderate 68.8 on the index, Canada is somewhat gentler at 63.0, and Mexico trails well behind both at 42.6, drawing remote workers and retirees seeking better value in cities such as Mexico City and Merida.<\/p>\n

    Europe<\/strong><\/h3>\n

    Switzerland (110.7) anchors the expensive end of Europe, Germany (68.7), France (67.7), and Spain (51.6) form a wide middle tier, and Portugal (48.8) remains one of the most affordable entries in Western Europe.<\/p>\n

    Asia<\/strong><\/h3>\n

    Singapore (87.7) is Asia’s most expensive economy on this list, Japan (47.5) and South Korea (61.6) sit mid-table, and India (18.9) is the region’s, and the world’s, most budget-friendly major economy, a key reason it dominates searches for countries with the lowest cost of living<\/strong>.<\/p>\n

    Middle East<\/strong><\/h3>\n

    The UAE (55.2) leads the Gulf region, ahead of Qatar (50.4), Bahrain (47.6), Saudi Arabia (43.9), and Oman (43.6), all of which pair moderate cost scores with strong local purchasing power thanks to tax-free income structures.<\/p>\n

    Oceania<\/strong><\/h3>\n

    Australia (67.9) and New Zealand (60.3) both carry above-average grocery costs relative to their overall index, a pattern typical of geographically isolated economies that rely heavily on imports.<\/p>\n

    Cost of Living vs Living Standard Index<\/strong><\/h2>\n

    Cost and quality of life are related but not identical, and this distinction is where searches for a living standard index or living index by country usually lead.<\/p>\n\n\n\n\n\n\n\n\n\n
    \n

    Factor <\/strong><\/p>\n<\/td>\n

    		Cost of Living Index<\/strong><\/td>\nLiving Standard Index<\/strong><\/td>\n<\/tr>\n
    What it measures<\/td>\nEveryday expenses<\/td>\n\n

    Overall quality of life<\/p>\n<\/td>\n<\/tr>\n

    \n

    Housing<\/p>\n<\/td>\n

    		Price only<\/td>\nPrice and adequacy<\/td>\n<\/tr>\n
    Healthcare<\/td>\nCost<\/td>\n\n

    Access and quality<\/p>\n<\/td>\n<\/tr>\n

    \n

    Education<\/p>\n<\/td>\n

    		Cost<\/td>\nAccess and quality<\/td>\n<\/tr>\n
    Safety<\/td>\nNot measured<\/td>\n\n

    Included<\/p>\n<\/td>\n<\/tr>\n

    \n

    Income levels<\/p>\n<\/td>\n

    		Not measured<\/td>\n\n

    Included<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n

    A country can rank as expensive on the cost of living index while still delivering a strong living standard, or rank as cheap while offering weaker healthcare and safety outcomes. That’s why relocation decisions should weigh both indicators together rather than cost figures alone.<\/p>\n

    Cost of Living and Purchasing Power Explained<\/strong><\/h2>\n

    The local purchasing power index measures how far an average local salary stretches against local prices. Pairing it with the cost of living index by country tells a fuller story than price alone.<\/p>\n\n\n\n\n\n\n\n
    \n

    Country <\/strong><\/p>\n<\/td>\n

    		Cost of Living Index <\/strong><\/td>\nLocal Purchasing Power Index <\/strong><\/td>\n<\/tr>\n
    Switzerland<\/td>\n110.7<\/td>\n\n

    170.6<\/p>\n<\/td>\n<\/tr>\n

    \n

    Germany<\/p>\n<\/td>\n

    		68.7<\/td>\n138.3<\/td>\n<\/tr>\n
    United States<\/td>\n68.8<\/td>\n\n

    146.0<\/p>\n<\/td>\n<\/tr>\n

    \n

    India<\/p>\n<\/td>\n

    		18.9<\/td>\n\n

    76.4<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Switzerland’s prices run more than five times higher than India’s on this measure, yet its purchasing power index is also more than double India’s, showing that earning capacity, not sticker prices alone, determines how expensive a country really feels day to day. If you’re heading somewhere with a stronger currency, it’s worth locking in your budget early rather than converting cash on the fly; you can order forex<\/strong><\/a> online in advance and skip the airport-counter mark-up.<\/p>\n

    Key Factors That Influence Living Costs Worldwide<\/strong><\/h2>\n

    Housing Prices<\/strong><\/h3>\n

    Rent and mortgage costs are usually the single largest line item, and vary more between neighbourhoods than between countries; a capital-city apartment can cost three to five times more than the same unit in a smaller town.<\/p>\n

    Food and Grocery Costs<\/strong><\/h3>\n

    Import dependency, tariffs, and local agricultural output all shape grocery bills, which is why island nations and desert economies tend to sit higher on the index than countries with strong domestic farming.<\/p>\n

    Transportation Expenses<\/strong><\/h3>\n

    Fuel taxes, public transit subsidies, and vehicle import duties create wide swings; some Gulf nations keep fuel prices low, while several European countries tax it heavily.<\/p>\n

    Healthcare Costs<\/strong><\/h3>\n

    Countries with public, tax-funded healthcare (much of Western Europe) show lower out-of-pocket costs than countries relying on private insurance, even when their overall index score is similar.<\/p>\n

    Taxes and Inflation<\/strong><\/h3>\n

    Value-added tax, income tax, and recent inflation all feed into local prices, meaning two countries with the same index score can still put very different pressure on a household budget.<\/p>\n

    Currency Exchange Rates<\/strong><\/h3>\n

    Because most indices benchmark in US dollars, currency depreciation can quietly push a country up or down the rankings even when local prices haven’t changed much in real terms. Before you travel or transfer money abroad, it helps to check Thomas Cook’s currency exchange rates<\/strong><\/a>, so you know roughly how far your money will stretch once you land.<\/p>\n

    Best Countries for Affordable Living and High Quality of Life<\/strong><\/h2>\n

    Search interest around affordability increasingly overlaps with relocation intent, where low cost alone isn’t the full picture. The countries below consistently balance budget-friendly living with healthcare, safety, and lifestyle.<\/p>\n\n\n\n\n\n\n\n\n
    \n

    Country <\/strong><\/p>\n<\/td>\n

    		Affordability <\/strong><\/td>\nQuality-of-Life Reputation <\/strong><\/td>\n<\/tr>\n
    Portugal<\/td>\nHigh<\/td>\n\n

    High<\/p>\n<\/td>\n<\/tr>\n

    \n

    Costa Rica<\/p>\n<\/td>\n

    		High<\/td>\n\n

    Good<\/p>\n<\/td>\n<\/tr>\n

    \n

    Malaysia<\/p>\n<\/td>\n

    		High<\/td>\n\n

    Good<\/p>\n<\/td>\n<\/tr>\n

    \n

    Thailand<\/p>\n<\/td>\n

    		High<\/td>\nGood<\/td>\n<\/tr>\n
    Spain<\/td>\nModerate<\/td>\n\n

    High<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Portugal in particular is repeatedly named among the best-value countries for expats and retirees, pairing low housing costs with tax-funded healthcare and an easier path to residency than many Western European neighbours.<\/p>\n

    How to Use a Cost of Living Index Before Moving Abroad?<\/strong><\/h2>\n

    A single index score is a starting point, not a full budget. Here’s how to turn it into a realistic moving plan:<\/p>\n

    Compare housing costs first. <\/strong><\/h3>\n

    Rent or mortgage payments usually swing a budget more than any other line item, so check the rent index for your destination city, not just the national average, before you commit to a lease.<\/p>\n

    Review realistic local salary expectations. <\/strong><\/h3>\n

    A country’s cost index only matters relative to what you’ll actually earn there, so weigh it against typical salaries in your field rather than your current pay cheque.<\/p>\n

    Calculate income tax and social contributions. <\/strong><\/h3>\n

    Two countries with similar cost scores can leave very different take-home pay once local income tax, social security, and health-insurance deductions are factored in.<\/p>\n

    Assess healthcare costs and coverage. <\/strong><\/h3>\n

    Check whether your new country runs on public, tax-funded healthcare or private insurance, since this changes your monthly outgoings far more than the headline index suggests.<\/p>\n

    Factor in education expenses. <\/strong><\/h3>\n

    If you’re relocating with children, compare public versus international school fees; and if you’re the one studying abroad, a dedicated Studdy Buddy Card<\/strong><\/a> can make it easier to manage tuition-linked spending and everyday expenses in a new currency.<\/p>\n

    Check the local purchasing power index alongside the cost score. <\/strong><\/h3>\n

    A high cost of living paired with strong purchasing power (as in Switzerland) is a very different proposition from the same cost score paired with weak local wages.<\/p>\n

    Sort out how you’ll manage and move money. <\/strong><\/h3>\n

    Once you’ve landed, it’s worth arranging to apply for a forex card<\/a> for day-to-day spending abroad, and setting up remittance<\/a> if you’ll need to send money back home or support family in India while you’re away. Thomas Cook’s foreign exchange and remittance services cover both.<\/p>\n

    Conclusion<\/strong><\/h2>\n

    Cost of living varies dramatically worldwide, and no single figure tells the whole story. High-cost countries such as Switzerland and Singapore often pair steep prices with strong wages and services, while affordable countries such as India, Portugal, and Vietnam can offer excellent value for remote workers, retirees, and long-term travellers. The smartest approach is to read the cost of living index by country alongside purchasing power and living-standard indicators together, rather than relying on a headline number alone, before deciding where to move, work, or settle next.<\/p>\n

    Frequently Asked Questions<\/strong><\/h2>\n

    Which country has the highest cost of living?<\/strong><\/h3>\n

    Bermuda currently tops the global cost of living index, followed by the Cayman Islands, the US Virgin Islands, and Switzerland.<\/p>\n

    Which country is the cheapest to live in?<\/strong><\/h3>\n

    At the other end of the scale, Libya and India have the lowest cost of living index scores in 2026, with Pakistan, Afghanistan and Egypt not far behind.<\/p>\n

    How is the index of the cost of living calculated?<\/strong><\/h3>\n

    It is based on the average price of a standardised basket of goods and services, housing, food, transport, healthcare and utilities, compared to a benchmark city, usually New York.<\/p>\n

    What’s the difference between a living standard index and a cost of living index?<\/strong><\/h3>\n

    A cost of living index measures the price of everything; a living standard index measures quality of life, including safety, healthcare access, and income, not just prices.<\/p>\n

    Which countries have the best quality of life for the money?<\/strong><\/h3>\n

    Costa Rica, Malaysia, Thailand, Spain and Portugal are repeatedly cited as providing good value for money in terms of affordability, healthcare and lifestyle.<\/p>\n

    Does the cost of living index get updated annually?<\/strong><\/h3>\n

    Numbeo and most other major indices update several times a year based on continuously collected user-contributed and institutional price data, rather than an annual snapshot.<\/p>\n","protected":false},"excerpt":{"rendered":"

    0 0 No two countries charge the same price for everyday life. A coffee that costs $2 in Hanoi can cost $7 in Zurich, and a one-bedroom apartment renting for $300 in Cairo might command $3,000 in Manhattan. These gaps […]<\/p>\n","protected":false},"author":3588,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"post-forex-destination-right.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3134],"tags":[],"class_list":["post-161603","post","type-post","status-publish","format-standard","hentry","category-forex"],"acf":[],"yoast_head":"\nCost of Living Index by Country to Compare Living Costs | Thomas Cook<\/title>\n<meta name=\"description\" content=\"Explore the world living index to see how prices differ across nations. Check the living standard index and plan travel forex with Thomas Cook. 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