London has become the second most expensive city in the world because of high accommodation and transport costs.

Appreciation of the pound against the US dollar also helped push the city up a league table of 144 international cities.

Tokyo is the only city more expensive to live in than London, which has moved up from seventh position in the past year, according to research by Mercer Human Resource Consulting.

Glasgow and Birmingham were ranked at 41 and 51, while Dublin came in 14th place.

Monday June 14, 2004