The Venezuelan capital of Caracas has overtaken Tokyo to become the most expensive city in the world for international job assignments, according to a new ranking.
Topping the list for the first time, Caracas moved up from seventh in the previous year, driven by a 60 percent rise in the price of goods and services frequently used by expatriates, global human resource consulting firm ECA's Cost of Living survey showed.
Venezuela suffers from one of the highest inflation rates in the world due in part to the government's price controls, which act as a disincentive to local producers and has led to shortages of goods, as well as strict controls on foreign currency exchange. The government restricts access to dollars, which pushes up the price of imported goods.
(Read more: America's cheapest states to li ve in 2013)
The survey compares a basket of like-for-like consumer goods and services commonly purchased by foreign assignees in 440 cities worldwide, including groceries, drink and tobacco, clothing and meals out.
The ranking excludes accommodation, school fees, utilities charges, and car purchases as they are typically compensated for separately in expatriate packages, ECA said.
Luanda, the capital of Angola - Africa's second largest oil producer – ranked in second place, with the cost of goods in the city elevated due to hefty import duties, high taxes and monopolized supply chains linked with the country's political elite.