World's most expensive cities

NEW YORK (CNNMoney.com) -- The vodka may be cheap, but according to the latest cost-of-living survey from Mercer Consulting, Moscow now ranks as the world's most expensive city, edging out Tokyo, which held the No. 1 spot for four straight years.

Moscow ranked No. 4 last year, but rose through the ranks for a few reasons, according to Mercer senior consultant Rebecca Powers. The currencies of Tokyo, Osaka and London -- the top 3 cities last year -- fell relative to the dollar, while the Russian ruble remained fairly stable. Plus, Powers added, the price of housing for expatriates in Moscow has risen considerably in the past 12 months.