Moscow has replaced Tokyo as the worlds most expensive city, according to the latest research by Mercer Human Resource Consulting.

Seoul is in second place, followed by Tokyo in third place, followed by Hong Kong. Asuncion in Paraguay was the least expensive city in the survey.

Rebecca Powers of Mercer said: "We have seen significant shifts in the cost-of-living rankings over the past few years, reflecting a changing global market. For many companies, it can now be more expensive to send employees to work in Russia or Korea than places like Japan or Switzerland which are often perceived to be more costly.

"More companies are now sending employees on expatriate assignments, so there is a greater need to keep pace with the cost of living changes."