CHENNAI: Blame it on Tasmac and uninspiring brands sold in its outlets, expatriates in Chennai experience a higher cost of living than their counterparts in Bengaluru and higher expenditure on liquor purchase is one of the reasons.As per the 24th annual Mercer's cost of living survey, Chennai is the 144th expensive city for expats to live in (out of 209 surveyed worldwide) - 26 spots higher than Bengaluru in 170 - and the third most expensive Indian city behind Mumbai (55) and New Delhi (103). Hong Kong was ranked the most expensive city followed by Tokyo and Zurich.Though the city has dropped by nine spots compared to last year's survey, a 5.57% inflation ensures acquisition cost for essential goods remain on the higher side for the expat community. “In Chennai, prices of alcohol and clothing remain on the higher side,” a statement from Mercer said.Bengaluru's low cost of living is due to the drop in commuting expense, the report said. “...including taxi fares, cost of auto and auto parts as well as running costs” have experienced a relative drop in Bengaluru. The cheapest city for an expat in India was Kolkata (182) though purchasing domestic supplies and home services in the city costs more now than in the recent past, the report added.Mercer said that it measured the comparative cost of more than 200 items in the cities surveyed, including housing, transportation, food, clothing, household goods and entertainment - all of which are factors which impact the cost of doing business for multinational firms - before compiling the rankings.“Increase in prices of goods in our cities has a direct impact on the Indian assignee compensation, making overseas assignment costs sometimes greater and sometimes smaller. Companies are reconsidering how frequently expat salaries need to be reviewed in this scenario,” said Padma Ramanathan, India Practice Leader, Global Mobility, Mercer.The report also suggested that factors like slowing economic growth in the developed world could force Indian multinationals to pursue Latin American and African cities, where either cost of living has dropped or remained low over the years, as potential deployment options for Indian expats instead of cities in the UK and USA.“Indian multinationals are concerned about geo-political context in countries with high assignee population like in the Unites States and in the United Arab Emirates. This is forcing companies to reassess their policies and examine whether their approaches are compatible and cost-effective. They have been shifting focus on businesses in emerging markets, specifically geographies in Latin America and Africa to meet their business growth strategy”, Padma Ramanathan said.