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Japan"s Osaka was ranked second in the Cost of Living Survey conducted by Mercer, up from 11th last year, while Moscow, which had been number one for three years, took third place.

The rising cost of living for foreigners in Japan is due mainly to the strengthening of the yen against the U.S. dollar during the economic crisis, Mercer consultants said. While many world currencies have fallen against the dollar, the yen has shown strong growth.

Moscow remains Europe"s costliest city in terms of expatriate expense claims, but the ruble"s decline has brought accommodation costs down.

Fourth and fifth on the list are Geneva and Hong Kong, while London has dropped out of the top 10 for the first time since 2001, falling to 16th from third.

Johannesburg has replaced Asuncion in Paraguay as the world"s cheapest city for expats due to the "sharp decrease of the South African rand against the U.S. dollar."

The survey measured the comparative cost of living

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