This is the most expensive town in the world and it could surprise you.

Luanda, the capital of Angola, is ranked as number one in a recent list of the most expensive cities in the world. Last year's most expensive city, Hong Kong, was knocked off the top spot.

The rankings come from the annual Cost of Living survey by Mercer, intended to assist multinational corporations and governments in assessing their expatriate workers' pay allowances.

The survey covers 209 cities across five continents and analyses the comparative cost of accommodation, transportation, food, clothing, household goods, and entertainment for more than 200 items in each city.

Asian and European countries were found to have the most costly cities at the top of the list, with Hong Kong in second position, followed by Tokyo, Zurich and Singapore. Because of the cost of goods and security, Luanda in Africa was judged to be the most expensive region.

As a result of the pound weakening against the US dollar following the Brexit referendum, UK cities have all slipped down the rankings since last year. London is ranked 30th (13 positions falling), Aberdeen 146th (61 falling) and Birmingham 147th (falling 51).

Meanwhile, Switzerland, with three cities in the top 10, is the most expensive country in Europe: Zurich, Geneva and Bern.

In today's global climate, the 23rd annual survey found that variables such as housing market volatility and inflation for goods and services added to the overall cost of doing business.

"Currency fluctuations have had a major impact on this year's rankings, including the weakening of both the British pound and the euro against the US dollar," explained Kate Fitzpatrick, Mercer's UK and Ireland global mobility practice leader. As a result, the ranking of several European cities has been moved down by about 10 to 20 points.

"In some cases, however, local conditions, such as accommodation availability, have counter-balanced or exacerbated the impact of currency movements."

Looking for the cheapest living room in town? Tunis, the capital of Tunisia, Bishkek, the capital of Kyrgyzstan, and Skopje, the capital of the Republic of Macedonia, are among the most accessible for expats at the other end of the rankings.

In this year's list, five out of the top 10 cities are in Asia. The reinforcement of the Japanese yen, along with the high cost of expatriate consumer goods and a competitive housing market, moved Japanese cities up the list," said Nathalie Constantin-Métral, Mercer Principal in charge of compiling the survey ranking." However, due to the weakening of the Chinese yuan against the US dollar, the majority of Chinese cities fall in the ranking.'

Owing to the appreciation of the Australian dollar, Australian cities, meanwhile, have leapt up the global rankings since 2016.

The 10 Most Expensive Cities in the World

1. From Luanda, Angola

2. Hong Kong and Hong Kong

3. Japan, Tokyo

4. Switzerland, Zurich

Singapore

6. South Korea, Seoul

7. Switzerland, Geneva

8. China, Shanghai

9. City of New York, US

Uh. 10. From Bern, Switzerland

The 10 Less Expensive Cities in the World

Huh. 200. Minsk, Bielorussia

201. Karachi

Uh. 202. Bosnia and Herzegovina Sarajevo

Uh. 203. Mexico, Monterrey

Uh. 204. Tiflis, Georgia

Uh. 205. Malawi, Blantyre

Uh. 206. From Windhoek, Namibia

Uh. 206. Macedonia's Skopje

Uh. 208. Kyrgyzstan, Bishkek,

Uh. 209. Tunis, Tunis, Tunisia