Hong Kong has tumbled down the list of most expensive locations as a weaker dollar continues to negate the impact of rising prices, according to the latest cost of living survey conducted by ECA International.

Hong Kong's 26-place drop in the global ranking is the largest fall of any city in Asia and puts the SAR in 58th position globally. Within the region, Hong Kong has slipped from being the 6th to the 9th most expensive location, despite the price of goods there having increased even more than this time last year.

"We are typically seeing higher price levels across the region compared with September 2010, and Hong Kong is no exception: items in ECA's cost of living basket have gone up by more than 7% in the last twelve months," says Lee Quane, Regional Director, Asia for ECA International.

In a regional context, the weak dollar means that the SAR is now cheaper than a number of other locations, including Singapore, Beijing and Shanghai, where there has not only been significant price inflation but also strengthening of currencies.

"While this is good news for many companies who have international assignees in Hong Kong, sending staff out of Hong Kong could become more expensive for businesses if allowances designed to protect an employee's purchasing power whilst on assignment need to be increased," says Quane.

Living costs for assignees are affected by inflation, availability of goods and exchange rates, all of which can have a significant impact on assignee remuneration packages.