UK rises up the rankings of the world's most expensive cities

British cities have edged up ranking of the world most expensive with London among the top 20 and Manchester in the top 50.

London moved up one place to 16, while Manchester jumped six to 47, the Economist Intelligence Unit found in its latest survey of transport, utilities, food, clothing and other items in 131 cities across the world.

However, the two cities are not as expensive as three years ago, when London was the third most expensive and Manchester was 28 in the table.

Jon Copestake, editor of the report, said: ''The cost of living in Europe has seen relative declines thanks to economic austerity and currency fears.

''Asian cities have also been rising on the back of wage growth and economic optimism. This means that over half of the 20 most expensive cities now hail from Asia and Australasia.''

The study showed that Tokyo was the most expensive for cost of living.

Cities in Australia have jumped up the list, with Sydney now the third most expensive city in the world, and Melbourne in fifth place.

The least expensive cities included Mumbai and New Delhi in India, Kathmandu in Nepal and Algiers in Algeria.

Top 10 most expensive cities

1. Tokyo, Japan (+1 place)

2. Osaka, Japan (+1)

3. Sydney, Australia (+4)

=4. Oslo, Norway (+1)

=4. Melbourne, Australia (+4)

6. Singapore (+3)

7. Zurich, Switzerland (-6)

8. Paris, France (-2)

9. Caracas, Venezuela (+25)

10. Geneva, Switzerland (-7)

Top 10 least expensive cities

=1. Karachi, Pakistan

=1. Mumbai, India

3. New Delhi, India

4. Kathmandu, Nepal

=5. Algiers, Algeria

=5. Bucharest, Romania

7. Colombo, Sri Lanka

8. Panama City, Panama

9. Jeddah, Saudi Arabia

10. Tehran, Iran