msemakweli
JF-Expert Member
- Feb 20, 2014
- 1,627
- 880
Dar es Salaam. Dar es Salaam
residents pay more to access basic
needs than their counterparts in
Nairobi and Kampala, a new study
shows.
The Cost of Living Index 2015,
published by Numbeo - the worlds
largest database of user contributed
data about cities and countries
worldwide puts Dar es Salaam on
position 18 in terms of
expensiveness out of a total of 22
cities that were covered in the
report.
Tanzanias largest and richest city is
only cheaper to Maputo, Harare,
Accra and Luanda in Mozambique,
Zimbabwe, Ghana and Angola
respectively. Numbeo uses six
factors to measure the
expensiveness or cheapness of a
city.
These include Consumer Price Index
CPI (the measurement of changes
in the prices paid by consumers for a
basket of goods and services), Rent
Index (the estimation of prices of
renting apartments) and Consumer
Price Plus Rent Index (an estimation
of consumer goods prices including
rent in the city). Other factors
include Local Purchasing Power,
which refers to relative purchasing
power in buying goods and services
in a given city for the average wage,
Groceries Index (an estimation of
grocery prices in the city) and
Restaurants Index which compares
prices of meals and drinks in
restaurants and bars.
Each of these factors is
benchmarked against prices offered
in New York City and a conclusion is
the reached. Basically, New York
Citys index is 100 per cent on each
aspect and therefore, a country that
scores more than 100 per cent on
each aspect is believed to be more
expensive than the United States
most populous city.
If another city has, for example,
rent index of 120, it means rents in
average in that city are 20 per cent
more expensive than in New York
City. If a city has rent index of 70,
that means in the average in that
city rents are 30 per cent less
expensive than in New York City,
reads a statement in the report.
On the CPI aspect, Dar es Salaam
ranks at 62.83 higher than
Kampalas index of 62.62 and
Nairobis index of 54.34. This means
that all the three East African cities
are less expensive than New York.
residents pay more to access basic
needs than their counterparts in
Nairobi and Kampala, a new study
shows.
The Cost of Living Index 2015,
published by Numbeo - the worlds
largest database of user contributed
data about cities and countries
worldwide puts Dar es Salaam on
position 18 in terms of
expensiveness out of a total of 22
cities that were covered in the
report.
Tanzanias largest and richest city is
only cheaper to Maputo, Harare,
Accra and Luanda in Mozambique,
Zimbabwe, Ghana and Angola
respectively. Numbeo uses six
factors to measure the
expensiveness or cheapness of a
city.
These include Consumer Price Index
CPI (the measurement of changes
in the prices paid by consumers for a
basket of goods and services), Rent
Index (the estimation of prices of
renting apartments) and Consumer
Price Plus Rent Index (an estimation
of consumer goods prices including
rent in the city). Other factors
include Local Purchasing Power,
which refers to relative purchasing
power in buying goods and services
in a given city for the average wage,
Groceries Index (an estimation of
grocery prices in the city) and
Restaurants Index which compares
prices of meals and drinks in
restaurants and bars.
Each of these factors is
benchmarked against prices offered
in New York City and a conclusion is
the reached. Basically, New York
Citys index is 100 per cent on each
aspect and therefore, a country that
scores more than 100 per cent on
each aspect is believed to be more
expensive than the United States
most populous city.
If another city has, for example,
rent index of 120, it means rents in
average in that city are 20 per cent
more expensive than in New York
City. If a city has rent index of 70,
that means in the average in that
city rents are 30 per cent less
expensive than in New York City,
reads a statement in the report.
On the CPI aspect, Dar es Salaam
ranks at 62.83 higher than
Kampalas index of 62.62 and
Nairobis index of 54.34. This means
that all the three East African cities
are less expensive than New York.