London has been named the world's second most expensive city for expatriates to live, according to a new study.
The capital climbed three places to second in Mercer Human Resource Consulting's 2007 Cost of Living study.
Russia's capital Moscow was named the world's most expensive city to live for the second year in a row.
Asian cities Seoul, Tokyo and Hong Kong completed the top five. Paraguay's capital Asuncion was the cheapest.
The survey covers 143 cities across six continents and measures the cost of 200 items including housing, transport, food, clothing, household goods and entertainment.
Mercer's Yvonne Traber said: "Steep property rental costs, together with the strengthening of the British pound compared to the US dollar have contributed to London's high ranking."
The high cost of accommodation and a favourable exchange rate against the US dollar were the key factors behind Moscow's continued dominance of the annual cost-of-living survey, Mercer said.
Across Europe, a stronger Euro pushed up the premium paid to live in many countries, notably Germany and Spain. Six European cities were in the top 10.
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