Britain 'stays bottom of costs league'

THE United Kingdom has the cheapest living costs of any country in the European Union, according to a survey published today. It is also turning into one of the less expensive countries in the world.

Comparisons of goods bought in 68 countries over the last year show that the UK has retained its position at the bottom of the European cheapness league but has moved down from 40th to 56th place in the world rankings, cheaper than Turkey and only slightly more expensive than Hungary and Vietnam. The survey, from the international research organisation, Employment Conditions Abroad, measures the cost of a typical 'basket' of consumer goods and services likely to be bought by expatriate staff. It includes food, drink, consumer durables, clothing and transport but excludes housing costs.

Sterling devaluation combined with low inflation mean that the basket cost only 3.5 per cent more in the UK this year. The biggest rise was in Brazil, where prices rose by 1,857 per cent and which climbed from 58th to 48th place in the rankings.

The most expensive country is Libya, where costs are 247 per cent more expensive than the UK, with Japan, 210 per cent dearer, in second place. The cheapest country of the 68 covered is India, where costs are 62 per cent of those in the UK. Denmark is the EU's most expensive country, 79 per cent dearer than the UK.

Among the biggest changes in the rankings is China, which in 1980 was bottom of the world table, with costs 70 per cent of the UK's. It is now 64 per cent dearer and has risen to 11th place. The survey attributes this to higher inflation and the greater range of consumer goods suitable for expatriate consumption.