The world's most expensive cities

With a name that means "fragrant harbor" and a location on the Pearl River, Hong Kong just sounds like it belongs on top of the list. The densely-packed metropolis serves as one of the most important financial marketplaces in the world. Expatriates often work in the banking industry - and can therefore presumably afford life in the former British colony.

Luanda, the capital of Angola, dropped from first to second in the rankings. Behind the high-cost of living is the fact that Angola lives primarily off of exporting its resources - natural gas most of all. Everything else has to be imported, and the costs stack up.

Zürich, Switzerland's largest city, ranks also as Europe's most expensive. Like Hong Kong, Zürich is a global financial powerhouse, though its population is much smaller. Its 400,000 residents can surely find consolation in the fact that their city also appears often at the top of quality of life rankings.

The Japanese capital of Tokyo shot up in the rankings, due to a strengthening in the yen. A stronger currency means that ex-pats have to shell over more dollars, pounds and euros to pay for rent or a plate of sushi compared to the year before. But life in the metropolis of nine-million has never really been cheap.

While the yen rose, the Russian ruble sank over the past year, bringing Moscow's cost of living for foreigners along with it. The capital city dropped from 17 to 67 in the rankings. The cheap currency gives expatriates a rare chance to stretch their home currency farther in an otherwise expensive city.

The Namibian capital Windhoek came in as the 2016 ranking's cheapest city, placing as number 209. In its annual study, Mercer focuses its attention on housing, food, leisure and transportation costs.

Relatively speaking, German cities are neither too cheap nor too expensive. Munich came in as Germany's priciest city at number 77, with Frankfurt at 88 and Berlin at 100. The northern port-city of Hamburg sprang up 11 spots to 133. "Living costs pushed prices up. The strong demand in big cities resulted in higher prices," said Mercer's Juliane Gruethner.