London 'cheaper than New York' following pound's Brexit plunge

With the Brexit-inspired 15 percent fall in the value of sterling since the EU referendum last year, London has become one of the cheapest of the world's major global centres.

The city's cost of living has fallen behind that of New York, Paris and Tokyo to its lowest level for two decades, reports The Guardian.

London's tumble down the Economist Intelligence Unit (EIU) world rankings has made prices in London much cheaper for foreign visitors, although not for local residents who earn their incomes in sterling.

"While the declines mean that British cities are cheaper compared to their international peers, the rise in import prices caused by the weak pound will mean that locals won't see their own shopping baskets falling in price. In fact, the opposite is likely to be true and, while U.K. cities fell down the ranking local prices for the basket of goods surveyed have begun to creep back up," the EIU said.

The world's most expensive city is Singapore, where average prices are 20 percent higher than in New York and one-third more than in London.

Sydney, Melbourne, Auckland and Wellington feature in the world's top 20 most expensive cities and each of them are pricier than London.

Almaty in Kazakhstan has been recognised as the cheapest city in the world, despite the galloping inflation in the country.

The EIU compares more than 400 individual prices across 160 products and services, including food, drink, clothing, rents, transport and utility bills. Prices are converted into US dollars, with each city ranked above or below New York.