Oslo has leapfrogged Osaka to become the world's second most costly city, due to robust economic growth and inflation boosted by rising property and oil prices, according to the survey.

The biannual survey compares the cost of a representative basket of goods and services in dollar terms from more than 130 cities worldwide to provide guidance for the calculation of executive allowances. New York is used as a base index of 100 for comparison.

Iceland's capital Reykjavik takes fourth place, while London has stopped its ascent of recent years, slipping two places to eighth.

The Japan Times: Aug. 13, 2005
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