Another island, Singapore is a non-mover in fourth place and with an index score of 79.1, it’s one of the few countries in our list to have a higher index score than last year.

Alcohol is considered a luxury item and is extortionately expensive, with a mid-range bottle of wine costing over $23 (£18). Meanwhile renting a one-bed apartment in the city centre costs an average of almost $2,930 (£2.3k) per month, and buying a new car is more expensive in Singapore than in almost any other country due to the government saddling purchases with taxes and tariffs as a form of traffic control. (Motorists must also pay to drive according to the route they take and time of day.)

To try and combat rising costs and to celebrate the 60th anniversary of independence, Singapore’s giving each household the equivalent of $596 (£473) in spending vouchers this year, with citizens over 60 getting double that and those over 21 getting an extra $447 (£355). There’ll be an income tax rebate of up to $149 (£118) too. And there's more good news: inflation has just softened to its lowest rate since February 2021.

The world’s most expensive countries to live in 2025