decreasing prices for certain commodities such as electronic and electrical goods. We attribute this to cheaper imports from developing countries, especially China, and to advances in technology."

     Although the five top-ranking cities in Asia remain relatively unchanged in the ranking, there have been significant changes further down the list. In India, Mumbai has moved up four places to reach 48, while New Delhi has gone up 13 places to 55 because of a stronger rupee against the US dollar. But In China, Shenzhen dropped 8 places from last year's 53 and Guangzhou moved to 70th from last year's 68.

     Neo Siew Khim, Mercer's Asia-Pacific head of information product solutions, said: "The increase in cost of living rankings for cities in countries such as Singapore, India and the Philippines can be attributed to the strong economic growth coupled with consumer demand (as in India), and the increasing attractiveness of the Philippines as an alternative investment location to China and India."