India's Costliest Cities in 2014: Mumbai Tops the List

"Where education is concerned for instance, Delhi has more public education facilities than Mumbai which would increase household costs in the latter," he pointed out. Some social experts also point out that cities like Delhi receive more subsidies from the Centre due to its advantaged political positioning.

When it comes to cost of Hotels, Mumbai has the highest average hotel room cost of 6734. It retains the top spot this year as well for the most expensive ‘hotel room night’. However, the room rate has fallen from 7580 in 2013 to 6734 in 2014. Jaipur (new entrant) is the least expensive city this year (3602.33) vs. Pune (5230) last year.

The index is carried out across 56 cities all over the world including 9 Indian cities. The index compares the cost of an evening out, taking into account typical costs for two people to enjoy a pre-meal cocktail, a meal out, taxis, and an overnight stay for two during the summer travel months of June to August.

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