The UK's Economist Intelligence Unit (EIU), a leading provider of country, industry and management analysis, has released its Worldwide Cost of Living Index 2014 Report.

The report revealed that Singapore is now the most expensive city in the world, mainly due to its currency appreciation and price inflation. The cheapest city, Mumbai in India, also happens to be located in Asia. In fact, Asian countries, such as India, Pakistan and Nepal, are home to a number of cities with low living costs.

However, cheap doesn't always mean cheerful. In most cases, low prices are driven by low wages, which keep household spending and per capita spending low.

Based on a survey covering 131 cities across the globe, this report sets New York as the benchmark city (New York=100) against other major cities.

The biannual survey compares more than 400 individual prices across 160 products and services, including food, beverages, clothing, household supplies and personal items, rent, transport, utility bills, private schools, domestic help and recreational costs. More than 50,000 individual prices were collected in the survey. A range of stores, such as supermarkets, mid-priced stores and higher-priced outlets, were also taken into account. Instead of recommended retail prices or manufacturer costs, the ranked prices are what paying customers are actually being charged.

The following are the top 10 cheapest cities to live in the world.

 Riyadh, Saudi Arabia

Riyadh, Saudi Arabia [File photo]

WCOL index: 57

Rank movement: -3

Average price of a 1kg loaf of bread: US$1.78

Average price of 1 bottle of table wine (750ml): N/A

Average price of 20 branded cigarettes: US$2.4

Average price of 1 liter of unleaded petrol: US$0.13