A recent survey reports that Mumbai and Delhi are included among World’s cheapest cities. Mumbai shared the top-spot with Karachi; while Delhi stood third.

According to a survey; recently conducted by Economist Intelligence Unit, top Indian cities Delhi and Mumbai have found place among world’s cheapest cities.

Mumbai tops the list of all least expensive cities of the world.

Mumbai and Karachi; the financial capitals of India and Pakistan respectively, topped the list of the cheapest cities of the world. They were followed by the Indian Capital city New Delhi which was ranked third. Algiers, the Capital of Algeria and the Capital of Nepal Kathmandu were the other two world cities included in the top five cheapest cities of the world.

Recently Economist Intelligence Unit conducted a survey among world’s top 131 cities. The survey was based on the cost of living. The cost of living was decided on the prices of over 160 items. The list of the items included the transport-fares, utility service charges, and expenses on food and clothing.

Along with the Pakistan Capital, Mumbai shared the top spot. EIU reported that the average household spending is very low on per capita basis. The income inequality existing in Mumbai is seen as the reason for its top-spot. However the survey was calculated on the Western financial standards.

Mumbai is ranked as the least expensive city of the world.

As per the EIU Survey -2013, Tokyo was ranked the most expensive city in the world. The list was followed by Japanese city, Osaka and three other Australian cities namely Sydney and Melbourne. Oslo, the capital of Norway, is another most expensive city of the world.

Jon Copestake, editor of the Economist Intelligence Unit said that the Australian cities reached the top mainly because of the inflation and the currency swings that existed in the country.

Interestingly 11 most expensive cities out of top 20 were from Asia and Australia. The list included 8 European cities and one from South America. With the steep rise in property costs and rentals Tokyo also found a place in the list among the expensive cities of the world.

The top-10 list of expensive cities includes Zurich, Singapore, Paris, Caracas and Geneva. Bucharest, Colombo, Jeddah, Panama City and Tehran are included in the list of least expensive cities of the world which is headed by Mumbai and Karachi.