Oh Dear This Makes London More Dear
 

The pound continued its rise against the dollar today, moving above the $2.03 level as concerns over the US sub-prime mortgage sector continued to hurt the greenback.

A recent prestigious survey of cost of living has placed London as the world's 2nd most expensive city - with this it could be number one soon

This will make it more expensive for folks with dollars, not necessarily for Londoners.

It doesn't make things like the Biritsh Museum, Tate Modern, et al any more expensive for Americans

Comparison between $2.00 and $2.03 rates:

Say you spend 1000 pounds on your London stay. That will equate to $2000 at the $2.00 rate, or $2030 at the $2.03 rate.

Getting a cheap airfare and a good hotel deal is much more important than exchange rate fluctuations.

<This will make it more expensive for folks with dollars, not necessarily for Londoners>

with imports being cheaper because of higher pound life could even become cheaper for locals?

I don't think the point is that it's gone from $2.00 to $2.03. If you went to the UK 5 years ago (ie; the pound was about $1.50) and are going back, just from the cost of the currency fluctuation, it will cost you 1/3 more than it did then. If you add inflation in, the cost is more.

and since your flight is in $, one of the larget ticket items won't fluctuate.

Why worry over something you can't control and that won't make a significant difference?

One of the factors affecting this is the differential in interest rates. They have risen and there is talk of them going still further up because inflation is pressing a bit, not least in the prices of things we can't import (like housing).

perhaps joining the Euro would help bring the cost of living down?

Last I heard the € was at an all time hight against the $

Will just dine at less expensive restaurants... found some really lovely sushi places last time around for meals on the go. Also we generally eat supper at around 4pm so that saves too with lunch portions.

I thought London was the world's most expensive city? Which one is ranked first PalenQ or others? Somewhere in Asia I'm guessing?

Moscow I believe.

If you think the EIU's survey of relative costs of expatriate living is "prestigious" - or tells you anything at all about the relative prices of essentials like a pint of beer or a theatre ticket - you're easily impressed. And gullible.

But not as naive as you'd be if you thought prices in Britain - which have risen more slowly than in the Eurozone since the Euro was introduced - would be lower if Britain had damaged its economy by introducing the job-destroying, growth-eliminating, Euro.