March 9 (Bloomberg) -- London is cheaper than New York for the first time since 2002, as the British pound tumbled in value, according to a survey by the Economist Intelligence Unit.

London fell to the world’s 27th most expensive city from eighth place six months ago, the EIU said in a survey published today on the worldwide cost of living. New York rose to 23rd most expensive from 39th. Tokyo was the costliest city, followed by Osaka, Japan, and Paris. Karachi, Pakistan, was the cheapest.

The changes in rankings reflect currency moves, including sterling’s 22 percent decline against the dollar in six months, and the yen’s gain. The cities of Western Europe are more expensive than any other region, followed by North America.

“There’s been a massive change in rankings based on currency changes,” said Jon Copestake, editor of the survey.

Reykjavik tumbled 28 places to 67th as the Icelandic krone collapsed, and Seoul fell to 66th place from 35th.

Following Tokyo, Osaka and Paris, the next priciest cities are Copenhagen, Oslo and Zurich.

The least expensive cities after Karachi are Tehran, Mumbai, New Delhi, Kathmandu, Nepal, and Tripoli, Libya.

The survey measures the prices of 160 products and services, including food, alcohol, utilities and clothing. It doesn’t include commercial or residential rent. The survey adjusts the price data collected in September for currency changes.

EIU Survey’s 28 most expensive cities (and rank 6 months ago):

1. Tokyo (6) 2. Osaka (8) 3. Paris (2) 4. Copenhagen (3) 5. Oslo (1) 6. Zurich (7) 7. Frankfurt (4) 7. Helsinki (4) 9. Geneva (12) 10. Singapore (15) 11. Hong Kong (28) 12. Vienna (10) 13. Dublin (11) 14. Brussels (12) 14. Milan (12) 16. Munich (16) 17. Berlin (17) 18. Barcelona (19) 18. Noumea, New Caledonia (20) 20. Madrid (20) 21. Caracas (35) 21. Lyon (24) 23. New York (39) 23. Chicago (39) 23. Los Angeles (39) 23. Hamburg (26) 27. London (8) 27. Amsterdam (27)

To contact the reporter on this story: Brian Lysaght in London at blysaght@bloomberg.net.

Last Updated: March 9, 2009 13:58 EDT