The September 2021 Cost of Living Survey took place in very different circumstances than six months or one year ago. As many countries around the world saw a return to international travel and rising demand, supply chain problems have been exacerbated and pushed up prices around the world.
Some countries that were hit by the halt in travel have seen rebounds in their currencies, while those reliant on oil or other commodities have also continued to bounce back. Consumers across the world have been hit by rising prices for fuel in particular, but also for electrical goods that use semiconductors which have been in short supply. This rise in inflation in the last 12 months has been relatively broad-based so its impact on indices will be limited with only those most affected seeing significant index changes.
Use the interactive map below to find out more about how various factors affected indices in the countries where you have assignees. Simply choose a home location from the dropdown and learn more about how cost of living indices changed in the six months to September 2021. The exchange rate changes, inflation and index change indicator will vary depending on the home location selected and are based on ECA's default standard home-based index and may change if different assumptions are used.
Home: Belgium
Argentina
Buenos Aires
What has changed?
Inflation in Argentina remained high in the six months to September 2021. While the peso depreciated over the same period the pace of depreciation has slowed.
What does this mean for expats?
Indices for inbound assignees increased as the impact of higher prices outweighed that of the weakening peso.
Australia
National average
What has changed?
Australia’s inflation rose in the six months to September 2021 but remains low while the Australian dollar decreased in value against all major currencies.
What does this mean for expats?
With many currencies buying more Australian dollars than six months ago many inbound assignees to Australia saw slightly lower indices this survey.
Brazil
National average
What has changed?
Multiple factors – including Covid-19, political uncertainty and rising oil prices – contributed to rising inflation in Brazil in the six months leading up to September 2021. Despite these issues, trade surpluses and interest rate hikes helped the Brazilian real recover from previous lows to gain against all major currencies during the same period.
What does this mean for expats?
Rising prices combined with the appreciation of the Brazilian real caused indices to rise significantly for many assignees in the country, but for the same reasons, outbound assignees from Brazil saw indices fall.
Chile
Santiago
What has changed?
The Chilean peso performed particularly poorly in the six months to September 2021, while inflation crept up a little compared to the previous six months.
What does this mean for expats?
The effect of higher prices has been largely offset by the depreciation of Chile’s currency. This means most assignees in the country will have seen their indices decrease.
China
Beijing & Shanghai
What has changed?
Inflation in China remained low in the six months to September 2021, while the yuan strengthened against most currencies in this period.
What does this mean for expats?
Exchange rate movements have been the largest factor influencing index changes for most assignees with indices rising for most European assignees and falling for those from the US.
Ethiopia
Addis Ababa
What has changed?
Ethiopia’s economy continued to suffer from the impacts of the pandemic and the escalating civil war. Prices in Addis Ababa rose substantially in the six months leading to September 2021, at around double the rate of the previous six months, while the Ethiopian birr depreciated significantly in the same period.
What does this mean for expats?
Despite the weakening currency making the country cheaper for visitors, indices for most inbound assignees have increased due to high inflation.
Iran
Tehran
What has changed?
Though there remains some hope that a nuclear deal can be renegotiated, the US sanctions associated with this deal continue to adversely impact the Iranian economy. Inflation between March and September 2021 remained high, though lower than for the previous six months, and the Iranian rial continued to depreciate against all major currencies, though, again, more slowly than in the previous survey period.
What does this mean for expats?
While partially offset by the depreciation of the rial, high inflation caused indices to rise for most assignees.
Lebanon
Beirut
What has changed?
Lebanon’s economy remained in crisis in the six months to September 2021. Shortages of some goods, the end of fuel subsidies, and continued political instability exacerbated an already dire situation. Inflation continued to be extremely high – on average, prices in our basket doubled.
What were the exchange rate options available to expats at the time of the survey?
Since September 2019, multiple distinct exchange rates have come into use due to Lebanon's banking sector collapse, spurring development of a thriving black market that offers a premium to official rates. The ‘official’ rate and the Lebanese dollar bank rate (applicable for US dollar account holders when withdrawing Lebanese pounds) both remained unchanged from the last survey, at USD 1 / LBP 1508 and USD 1 / LBP 3900 respectively. However, in May 2021, the central bank launched an online currency exchange platform, “Sayrafa”, which now provides access to currency at a rate closer to the black-market level. Since this rate (USD 1 / LBP 16330) is readily accessible to assignees through commercial banks and bureaux de change, we have used it in our published indices.
ECA believes that the Sayrafa rate is the most appropriate exchange rate for most clients, but if clients are unsure they should contact us to discuss the wide range of options available in Lebanon to determine the one that best suits their situation.
What does this mean for expats?
Overall, despite the very high inflation seen in the six months to September, the change to the much more favourable Sayrafa exchange rate caused indices to decrease significantly for inbound assignees.
Seychelles
Victoria
What has changed?
The Seychelles rupee was one of the world’s strongest performing currencies in September 2021 – the return of tourism in recent months helped bring the currency close to its pre-pandemic level. The stronger currency helped significantly reduce the level of inflation in the months between March and September 2021 compared to the previous six months.
What does this mean for expats?
The large appreciation of the Seychelles rupee against all currencies has caused indices to rise sharply for all assignees in the country.
South Sudan
Juba
What has changed?
South Sudan’s central bank started to steadily, but significantly, devalue the South Sudanese pound from March this year in an effort to bring the official rate closer to the black-market level. Inflation continued to be high in South Sudan.
What does this mean for expats?
The massive fall in the value of the South Sudanese pound outweighed the effect of the high inflation seen in the months between March and September 2021. As a result, inbound assignees have seen their indices fall.
Sudan
Khartoum
What has changed?
The government’s sharp devaluation of the Sudanese pound in February 2021 appears to have largely succeeded in its aim to unify the official and black-market exchange rates, though the currency continued to depreciate in the six months to September 2021. Inflation, spurred by the devaluation remained very high in the same period.
What does this mean for expats?
Despite the steady depreciation of the Sudanese pound, the extremely high inflation caused indices to rise for inbound assignees.
Surinam
Paramaribo
What has changed?
In early June 2021, the central bank devalued the Surinamese dollar by around a third, while inflation remained very high in the six months to September 2021.
What does this mean for expats?
Most assignees in Surinam have seen indices fall as the impact of the exchange rate devaluation has more than offset the higher prices.
Thailand
Bangkok
What has changed?
Inflation remained low in Thailand between our March and September 2021 surveys. However, the currency depreciated substantially as the nation suffered its most serious wave of Covid-19 to date, with cases peaking in late August - ending hopes of an early economic recovery.
What does this mean for expats?
Indices will have fallen for most inbound assignees as the significantly weaker currency has made the country cheaper for visitors and more than offset small price rises.
Turkey
National average
What has changed?
Inflation in Turkey accelerated between March and September 2021. In the same period, the lira depreciated considerably against major currencies, fuelled by President Erdogan’s continued opposition to raising interest rates, a measure which would help stabilise the currency.
What does this mean for expats?
Indices for most inbound assignees will be slightly lower compared to the March 2021 survey, as high inflation is counterbalanced by the depreciation of the currency.
Turkmenistan
Ashgabat
What has changed?
Inflation has jumped in Ashgabat, with prices increasing significantly in the six months to September 2021. Despite a much lower value on the black market, the official exchange rate for the currency remains pegged to the US dollar at USD 1 / 3.50 TMT.
What does this mean for expats?
Indices, which are already very high, have once again increased considerably for assignees in the country.
United Kingdom
National average
What has changed?
The rate of inflation increased a little in the six months to September 2021 mostly thanks to higher fuel costs and rising prices for electrical goods. The pound also remained relatively stable over the same period.
What does this mean for expats?
As both prices and the pound remained reasonably steady over this period, changes to indices will tend to be small and largely depend on conditions in the home or host location.
United States of America
National average
What has changed?
Inflation in the USA rose significantly by local standards in the six months to September 2021 as many goods rose in price. Most notable were fuel, due to rising oil prices, and the cost of a meal out, partly because of labour shortages. In the same period, the US dollar performed well against other major currencies, recovering from falls in the previous six months.
What does this mean for expats?
Both the moderate inflation and strength of the dollar contributed to a rise in indices for most assignees in the USA. Conversely, indices will have mostly fallen for American assignees abroad as the buying power of their dollars rises.
Venezuela
Caracas
What has changed?
The bolivar depreciated by more than 50% against major currencies between March and September 2021. Inflation in the six months to September, which is still extremely high by most standards at around 150%, is now only about a third as high as in March 2021.
What about the redenomination of the bolivar?
On 1 October 2021, Venezuela redenominated its currency, the sovereign bolivar. The currency was rebased by a factor of 1,000,000 and is being labelled the “digital bolivar”. The September 2021 survey data is quoted using the new redenominated currency.
What does this mean for expats?
Despite the significant currency depreciation, indices for assignees in the country have increased compared to March 2021 due to substantial price increases.
Zambia
Lusaka
What has changed?
The Zambian kwacha has appreciated significantly in recent months as the economy’s vital copper industry recovered and the presidential election in August resulted in a relatively peaceful transfer of power. Despite this recovery, in the same period prices increased significantly more quickly than in the previous six months.
What does this mean for expats?
Indices have risen considerably for assignees in the country due to the combination of very high inflation and a strengthening currency.
Zimbabwe
Harare
What has changed?
Inflation in Harare has stabilised in the six months to September 2021, with prices increasing at a similar rate to the preceding six months. In the same period, the central bank has held the value of the Zimbabwe dollar relatively steady despite the continued depreciation of the black-market exchange rate. However, expats holding hard currency may have access to favourable exchange rates at certain shops.
What does this mean for expats?
Assignees in the country have seen their indices increase due to higher prices and the stable official exchange rate.
Post-survey developments
The rise of the Omicron variant of Covid-19 has sent shudders across markets around the world. While much is still unclear, it appears that a more contagious virus is now sweeping the globe, affecting many economies as countries limit travel and enact stricter social distancing restrictions. These changes could affect demand if they continue and will also hit prices and exchange rates around the world in the coming months. Sign up to ECA's blog alerts to make sure you stay up to date with the latest exchange rate and inflation news.
However, some of the changes impacting assignees are as much man-made as caused by the pandemic. For example, in a repeat of the situation six months ago, President Erdogan of Turkey has sacked yet another governor of the Turkish central bank, causing a predictable plunge in the value of the lira which will likely push up inflation even further. Even in countries with more orthodox monetary policy, inflation is rising. While inflation is likely to die down in the coming year, assignees may be hearing a lot more about rising prices in the coming months.
Meanwhile, Turkey, Lebanon and Zimbabwe have seen their currencies lose more than 10% of their value against the euro since the September 2021 survey and this will mean lower indices if these rates are used with the September survey data, but the depreciation is also likely to fuel inflation in these countries.
In Angola, the kwanza has strengthened significantly against the euro in recent months, which would raise indices if used with the September 2021 survey data and may help to lower inflation there in the medium term as import costs are reduced.
ECA's interim surveys
We are currently undertaking interim surveys for the following countries due to high inflation expectations: Argentina, Ethiopia, Iran, Lebanon, South Sudan, Sudan, Surinam, Turkey, Turkmenistan, Venezuela, Zambia and Zimbabwe. The results will be available in January 2022.
FIND OUT MORE
If you require any assistance or would like additional information or data on the 493 locations included in our survey, or need advice regarding currency fluctuations, please get in touch.
Please contact us to speak to a member of our team directly.