By Damien Gayle

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Japan has been named the world's most expensive city in a new survey of living costs for expatriates.

The Japanese capital overtook Luanda, capital of Angola, to claim the top spot, while the Land of the Rising Sun's second city, Osaka, came in third.

London still ranks among the top 25 most expensive cities, but lost seven places from last year after gains by a number of Asian and Australian cities, including Melbourne.

Land of the rising prices: Tokyo's Shinjuku district. The Japanese capital has been named the world's most expensive city for visiting foreigners

Land of the rising prices: Tokyo's Shinjuku district. The Japanese capital has been named the world's most expensive city for visiting foreigners

The survey, by consultancy firm Mercer, analyses costs faced by visitors from the U.S., so the weakening of sterling against the dollar drove the decline in London's position.

Birmingham moved in the opposite direction, jumping 17 places to 133rd and overtaking Aberdeen (148) and Glasgow (161) after both Scottish cities fell.

Belfast is still the UK's least expensive city in the poll, but jumped 13 places to 165th place.

Mercer's research showed average rent for a luxury, unfurnished two bedroom apartment in London is one of the highest in Europe at 2,800 per month, compared with 1,925 in Paris and 1,506 in Rome.

Cinema-going is also an expensive activity in the capital, with admission costing an average of 12, nearly twice the price of tickets in Rome, Madrid and Berlin.

Beautiful... but dangerous: Luanda and other African cities feature in the top 20 of the list because of the cost of finding secure accommodation for expatriate workers

Beautiful... but dangerous: Luanda and other African cities feature in the top 20 of the list because of the cost of finding secure accommodation for expatriate workers

Mercer's UK head of data and product services, Milan Taylor, said: 'Despite price increases on goods and services most UK cities moved down in the ranking this year, following the loss in value of the British pound against the U.S. dollar.

'However, Birmingham and Belfast bucked the trend, moving up mainly because rental costs for expatriates increased a fair bit and price increases in these cities were higher than in say London and Glasgow.'

London is still more expensive than other leading tourist cities, including New York, in 33rd place, Paris - which fell 10 places to 37th - and Rome, which has fallen to 42nd.

The strength of emerging economies in the Asia-Pacific and struggles in the eurozone are reflected in the results.

Most European cities surveyed, including Athens, Madrid and Lisbon, slid down the rankings, while every surveyed city in Australia, China, Japan and New Zealand climbed, with Tokyo coming top.

Luanda and other African cities feature in the top 20 of the list because of the cost of finding secure accommodation for expatriate workers.

Brazilian cities Sao Paulo and Rio de Janeiro are also more expensive than London at 12th and 13th places respectively.

Pakistani city Karachi came bottom of the list, where the cost of living is under a third of that in Tokyo.

THE TOP 25 MOST EXPENSIVE CITIES IN THE WORLD FOR FOREIGN VISITORS

Here is a list of the most expensive 25 cities. The 2011 ranking is in brackets:

1. Tokyo, Japan (2)

2. Luanda, Angola (1)

3. Osaka, Japan (6)

4. Moscow, Russia (4) (right)

5. Geneva, Switzerland (5)

6. Zurich, Switzerland (7)

7. Singapore, Singapore (8)

8. N'Djamena, Chad (3)

9. Hong Kong, Hong Kong (9)

10. Nagoya, Japan (11)

11. Sydney, Australia (14) (middle right)

12. Sao Paulo, Brazil (10)

13. Rio de Janeiro, Brazil (12) (bottom right)

14. Bern, Switzerland (16)

15. Melbourne, Australia (21)

16. Shanghai, China (21)

17. Beijing, China (20)

18. Oslo, Norway (15)

19. Perth, Australia (30)

20. Libreville, Gabon (12)

21. Copenhagen, Denmark (17)

22. Seoul, South Korea (19)

23. Canberra, Australia (34)

24. Brisbane, Australia (31)

25. London, United Kingdom (18)

Here's what other readers have said. Why not add your thoughts, or debate this issue live on our message boards.

The comments below have not been moderated.

It probably depends on what you buy / do. Personally Sydney has been the most expensive place I've visited. There is virtually no way of living cheaply there. Whereas in places like Singapore, there are cheaper places to eat etc.

I don't understand how Sydney and other Australian cities are not ranked higher. I always find them eye wateringly expensive, and I live in a city that is supposed to be more expensive.

"Japan has been named the world's most expensive city in a new survey of living costs for expatriates." Didnt know Japan was a city!? Tokyo is the city! I live here! Get it right! LOL!

Not true. I have found that in most cases the prices are comparable to living costs in London.

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