Crime-Ridden Caracas Is World’s Most Expensive City for Expats

http://www.bloomberg.com/news/2014-06-10/crime-ridden-caracas-is-world-s-most-expensive-city-for-expats.html

The Venezuelan capital of Caracas, blighted by crime and shortages, has become the world’s most expensive city for expatriates, according to a cost of living survey released today by ECA International.

With the official exchange rate stuck at 6.3 bolivars to the dollar and inflation spiraling, the cost of living is 40 percent higher than second-placed Oslo, according to ECA, which provides research on employment, relocation and compensation.

Consumer prices in Venezuela soared 59 percent in the year through March, the highest in the world, after the government introduced two alternative currency systems that trade at about 10 and 50 bolivars per dollar. While prices in bolivars rise, many foreign companies still use the official rate for legal reasons.

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"Living in Caracas gets a lot cheaper if expatriates have access to the black market, where one dollar sells for about 70 bolivars, according to dolartoday.com, a website that tracks the rate at the Colombian border.