Which U.S. city is the most expensive?

The cost of living is improving in America compared to its global counterparts, according to a new report by Economist Intelligence Unit. Los Angeles ranks as the most expensive U.S. city but comes in at No. 41 on the list.

Meanwhile, Chicago dropped to No. 44 from 33, and New York is now No. 48.

The Economist Intelligence Unit, founded in 1946 as an in-house research unit for The Economist magazine, delivers business intelligence and advice to companies, financial institutions, governments and universities.

None of the world’s 40 most expensive cities are in the United States, according to the report, which provides a snapshot of the cost of living among 140 cities around the world calculated in dollar terms (the current weakness of the dollar makes other cities more expensive in comparison).

The survey took into account the price of more than 160 items – such as food, transportation, utilities, etc. – for its findings.

The priciest spots were dominated by cities in Japan, Australia, and Western Europe. In the survey, places like Tokyo, for example, were found to be 61 percent more expensive than New York.

The following are the world’s 8 priciest cities, according to the report.

1. Tokyo
2. Oslo
3. Osaka-Kobe, Japan
4. Paris
5. Zurich
6. Sydney, Australia
7. Melbourne, Australia
8. Frankfurt, Germany

Cities with the lowest cost of living were Karachi, Pakistan; Tunis, Tunisia; and Mumbai, India, according to the report.