What is the most expensive city to live in? And the least? Find out from this William M. Mercer survey of the cost of living in 214 cities. The 2012 survey found that Tokyo is the world's most expensive city for expatriates, while Luanda, Angola, secured the No. 2 spot. Of European cities, Moscow was the most costly, while New York was the most expensive of U.S. cities. The analysis uses New York as a base city and measures the comparative prices of more than 200 items in each location, including housing, transportation, food, clothing, household goods and entertainment. View more articles, issues, questions or lists.