The Economist Intelligence Unit has released its list of the world's 10 cheapest cities, based on the average cost of living. In its latest Worldwide Cost of Living survey, EIU compared all cities with the base city of New York, which has an index value of 100. It found Asian and Middle Eastern cities dominating the top 10 list. Eight of the 10 cities are repeaters from the previous year's list. Manila, Philippines, and Tunis, Tunisia, have been replaced by Muscat, Oman, and Katmandu, Nepal, in this year's list.

1. World’s 10 Cheapest Cities to
Live in, 2012

2. 1 Karachi, Pakistan and financial
Karachi is the largest city, main seaport
center of Pakistan, as well as the capital of the province
of Sindh.
The city has an estimated population of 21 million
people as of April 2012. At a density of nearly 6,000
people per square kilometer (15,500 per square mile).

3. 2 Mumbai, India capital city of the Indian state
Mumbai, formerly Bombay, is the
of Maharashtra. It is the most populous city in India, and the
fourth most populous city in the world, with a total metropolitan
area population of approximately 20.5 million.
Along with the urban areas, including the cities of Navi Mumbai
and Thane, it is one of the most populous urban regions in the
world

4. 3 Tehran, Iran
Tehran, sometimes spelled Teheran, is the
capital of Iran and Tehran Province. With a
population of 12,223,598 it is also Iran's
largest urban area and city, the largest city in
Western Asia and the 5th-largest city globally.

5. 4 Newthe capital of the Republic of India, and the seat of
New Delhi is
Delhi, India
executive, legislative, and judiciary branches of the Government
of India. It also serves as the center of the Government of the
National Capital Territory of Delhi. New Delhi is situated within
the metropolis of Delhi and is one of the eleven districts of Delhi
National Capital Territory.

6. 5 Jeddah, Saudi Arabia Red Sea and is the
Jeddah, is a city located on the coast of the
major urban center of western Saudi Arabia. It is the largest city
in Makkah Province, the largest sea port on the Red Sea, and
the second largest city in Saudi Arabia after the capital city,
Riyadh. With a population currently at 3.2 million, Jeddah is an
important commercial hub in Saudi Arabia.

7. 6 Katmandu, Nepal (Tie)
Kathmandu is the capital and, with almost one million inhabitants, the
largest urban agglomerate of Nepal. The agglomerate consists of
Kathmandu Metropolitan City at its core and its sister cities of
Lalitpur Sub-Metropolitan City, Kirtipur municipality, Madhyapur
municipality, Bhaktapur municipality as well as recently recognized
urban areas of Shankharapur municipality, Karyabinayak
municipality and Champapur municipality

8. 6 Panama City, Republic of (Tie) is the southernmost
Panama, officially the
Panama
Panama,
country of Central America.
Situated on the isthmus connecting North and South America, it
is bordered by Costa Rica to the west, Colombia to the southeast,
the Caribbean to the north and the Pacific Ocean to the south.
The capital is Panama City.

9. 7 Algiers, and largest city of Algeria. According to the
Algiers is the capital
Algeria
1998 census, the population of the city proper was 1,519,570
and that of the urban agglomeration was 2,135,630.
In 2009, the population was about 3,500,000. An estimate puts
the population at about 3,574,000 as of 2010.

10. 8 Dhaka, Bangaladesh principal city of
Dhaka is the capital of Bangladesh and the
Dhaka Division. Dhaka is a megacity and one of the major cities
of South Asia.
It is located on the banks of the Buriganga River. Dhaka, along
with its metropolitan area, has an estimated population of over
12 million in 2008, making it the largest city in Bangladesh

11. 9 Muscat, Oman It is also the seat of
Muscat is the capital of Oman.
government and largest city in the Governorate of
Muscat. As of 2010 census, the population of the Muscat
metropolitan area was 734,697.
The metropolitan area spans approximately 1,500 km2
(580 sq mi) and includes six provinces called wilayats.

12. World’s 10 Cheapest Cities to
Live in, 2012