In 2013, the yearly index of the most expensive cities in the world, produced by The Economist Intelligence Unit, lists Caracas as number nine. The Index is based on comparing prices for various products and services to New York. The official exchange rate for Bolivar is state-controled and pegged to the U.S. Dollar since 2003. From 2010, it has remained 4.30 (Bolivar to Dollar) even though Venezuela suffered from huge inflation. In fact, using a parallel “unofficial” exchange rate for the Bolivar of around 14:1 for last year would make Caracas join the list of cheapest cities, alongside Mumbai and Karachi.
Worldwide Cost of Living 2013: A summary from The Economist Intelligence Unit