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Tel Aviv's Sky-High McMeal: World's Priciest City?
19 Jul
Summary
- Tel Aviv's McMeal costs $20.90, making it the world's most expensive.
- Strong shekel, driven by tech and defense, lifts Tel Aviv's costs.
- Housing and food shortages significantly increase domestic prices.
Tel Aviv has become the world's most expensive city, with a McMeal now costing the equivalent of $20.90. This dramatic shift from its previous mid-price status a decade ago is detailed in a new Deutsche Bank report.
The primary driver behind this change is the appreciation of the Israeli shekel. This has been fueled by strong performance in Israel's domestic tech and defense sectors, alongside shifts in asset allocation by Israeli investors into shekel-denominated assets.
These currency movements have increased costs in dollar terms. However, experts also point to persistent domestic factors, such as constrained supplies of housing and food amid rising demand, as key contributors to Tel Aviv's elevated cost of living.
