Bangalore, India's Costliest City

Bangalore: Tech capital, Bangalore is the costliest Indian city revealed the Reserve Bank of India's Consumer Price Index (CPI). Bangalore is seen a couple of notches higher than the all-India cost-of-living average.

Bangalore had a CPI of 200, while the financial capital Mumbai was just a mark behind with a CPI of 199. The national CPI average was seen at 198.

The CPI measures a standard basket of items like food, clothing and transport, across the cities. Surprisingly, in the price race, Delhi is placed very low in the table at 181. Delhi has a benefit of the subsidies galore it receives from the Centre. Chennai was seen with a CPI of 187, while Kolkata was at 184.

Hyderabad, the City of Pearls, is the second most inexpensive city to live in, after Delhi. The city falls easy on the pocket due to low house rents, low power costs and cheap food.

Bangalore’s high cost of living has been credited to the city’s IT sector-led growth and the high cost of fuel. Bangalore has the highest city tax structure in the country, and Karnataka has the highest state taxation; it sources most consumer goods from other states, accounting for the high commodity cost.