Although Skopje residents would vehemently disagree, the Macedonian capital is the cheapest city to live in Europe according to a study of the cost of living in the world prepared by the global consulting company Mercer, French media reports.

Moscow is the most expensive capital city in Europe, followed by Geneva, Zurich, Bern and Oslo. Tokyo is the most expensive city in the world with the Pakistani city of Karachi hitting the bottom of the list.

Skopje is ranked 207th in the list. Tirana (205th) and Sarajevo (201st) are more expensive than Skopje.

Mercer's study was complied after analysing over 200 products and services, such as rent prices, public transport, entertainment, food, products for personal and household hygiene, clothing, etc.

Results from the study are used by international companies and governments from all over the world in order to determine compensations for their employees when they are sent to live abroad.