Is Living in African Cities Expensive?
Although several studies have examined why overall price levels are higher in richer countries, little is known about whether there is a similar relationship at the urban and city level across countries. This paper compares the price levels of citi...
Main Authors: | , , , , , , , |
---|---|
Language: | English en_US |
Published: |
World Bank, Washington, DC
2016
|
Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2016/04/26224160/living-african-cities-expensive http://hdl.handle.net/10986/24215 |
Summary: | Although several studies have examined
why overall price levels are higher in richer countries,
little is known about whether there is a similar
relationship at the urban and city level across countries.
This paper compares the price levels of cities in
Sub-Saharan Africa with those of other regions by analyzing
price information collected for the 2011 round of the
International Comparison Program. Readjusting the calculated
price levels from national to urban levels, the analysis
indicates that African cities are relatively more expensive,
despite having lower income levels. The price levels of
goods and services consumed by households are up to
31percent higher in Sub-Saharan Africa than in other low-
and middle-income countries, relative to their income
levels. Food and non-alcoholic beverages are especially
expensive, with price levels around 35 percent higher than
in other countries. The paper also analyzes price
information collected by the Economist Intelligence
Unit's Worldwide Cost of Living Survey, and obtains a
similar result, indicating higher prices of goods and
services in African cities. |
---|