Purchasing power of the Indian Metros – Mumbai, Delhi are among the lowest – UBS report

… UBS compared Price Levels and Wage Levels ranking lists. Wages alone do not determine the standard of living in a particular city or country.A betterwayto measure prosperity is to divide the average annual salary by the total price of basket of goods and services. This tells how much purchasing power local wages have. In a Western European city, one year’s gross income can buy roughly 13 of baskets; in Eastern Eur….. …. and 15% of the purchasing power of a salary in Zurich. …. UBS also took an example to further explain the concept of buying power. The iPod nano (with 8 GB of storage) is an ideal example of a globally uniform product. An average wage-earner in Zurich and New York can buy a nano from an Apple store after nine hours of work. At the other end of the spectrum are workers in Mumbai, who need to work 20 nine-hour days – roughly the equivalent of a month’s salary to purchase a nano….