Cost of Living in Bengaluru Cheapest in The World: Survey

India's IT capital Bengaluru is the cheapest city in the world to live in, according to a recent survey. It is tied with Karachi as the least expensive in the 'Worldwide Cost of Living 2015' report put together by The Economist Intelligence Unit.

A total of four Indian cities feature in the 10 cheapest cities in the world to live in. Singapore emerged as the most expensive city in terms of cost of living, followed by Paris.

"The cheapest cities in the ranking have a familiar feel to them, both in terms of geography and consistency. While Asia is home to some of the world's most expensive cities, the region is also home to many of the world's cheapest cities," The Economist Intelligence Unit said.

While a 1 kg loaf of bread in Singapore would cost around $3.54, the same would cost about $1.04 in Bengaluru, according to the report. A bottle of table wine (750 ml) in Singapore on an average would cost $25.24 compared to $11.55 in Bengaluru.

The other Indian cities that feature in the most inexpensive list are Mumbai, Chennai and New Delhi.
Mumbai is tied with the Venezuelan city Caracas as the second-most cheapest city in the world in terms of living expenses, followed by Chennai and New Delhi in the third and fourth position.

"Although India has been tipped for future growth, much of this is driven by its large population and the untapped potential within the economy. Income inequality means that low wages proliferate, driving down household spending and creating many tiers of pricing that keep spending per head low.

"This, combined with a cheap and plentiful supply of goods into cities from rural producers with short supply chains, as well as government subsidies on some products, has kept prices down, especially by Western standards." the report said.

The bi-annual survey compares more than 400 individual prices across 160 products and services which include food, drink, clothing, household supplies and personal care items, home rents, transport, utility bills, private schools, domestic help and recreational costs.