London : Tokyo is the world’s most expensive city while Mumbai and Karachi are the joint cheapest locations followed by New Delhi according to an annual survey the Economist Intelligence Unit (EIU), a news wire has reported.

Osaka in Japan was ranked the second most expensive.

Asia and Australasia account for 11 of the world’s top 20 most expensive cities, with eight from Europe and one from South America, the survey has found

Rounding out the bottom 10 were Bucharest in Romania, Colombo in Sri Lanka, Panama City, Jeddah in Saudi Arabia, and Iranian capital Tehran.

Referring to India and its forecasts for growth, the EIU said: “Income inequality means that household spending levels are low on a per capita basis, which has kept prices down, especially by Western standards.”