...Luanda, Angola.

Per Mercer and the BBC:

http://www.mercer.com/costoflivingpr

http://www.bbc.co.uk/news/business-16815605

When you think of the world's most expensive cities, the dusty Angolan capital of Luanda seems an unlikely contender.

Potholed, chaotic and still scarred by decades of civil war, the city has little of the glitz and glamour of Tokyo, New York or Moscow, and an estimated half of Angolans live on less than $2 a day.

But despite the obvious poverty and sprawling slums, Luanda still manages to boast some eye-wateringly high prices.

A house can be $10,000 (£6,500) a month to rent, a basic meal out for two is easily $50, a hotel room can weigh in at $400 a night and a kilo of imported tomatoes a staggering $16.

A basic saloon car without a driver (which foreigners need to negotiate the difficult traffic and parking) will be $90 a day, but upgrade to a SUV (recommended due to the poor quality roads) and you're looking at $200.

...

So why is a city like Luanda so expensive?

There are several reasons. The main one is that Angola lived through a long civil war which started in 1975, when the country gained independence from Portugal, and continued right up until 2002.


Flag of Angola
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New high-rise construction
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The slums where a significant number of residents live
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