Bangalore, India's Costliest City

Furthermore, Bangalore is also known to be a city with the most quality conscious consumers who do not mind paying a little extra; it is a city with the highest consumption of organic food stuff. The cost of education as well is one of the highest in the city.

Budget analyst Ravi Duggal told TOI that “there were different reasons for differential living costs among cities, including the aspiration of people.” Talking of Delhi and Mumbai, he further added that “Where education is concerned, Delhi has more public education facilities than Mumbai."

LPG costs are also noted to be the highest in Bangalore at Rs 415 per 14.2 kg cylinder compared with Rs 405 in Kolkata, Rs 402 in Mumbai and the highly subsidized Rs 393.50 in Chennai and Rs 399 in New Delhi.

While Mumbai is the second most expensive city in India, this is attributed to the high rent in the city. Economist, Vibhuti Patel of SNDT University was quoted saying to TOI “There are many factors, the chief being high rentals. Over 40 percent of the salary of an average Mumbaikar goes into paying rent."