Why is the cost of living increasing in many global cities?

The cost of living is going up because there are more people wanting to live in cool cities, but not enough houses and things for them to buy.

Imagine your favorite toy store has only three giant action figures left. If ten kids all want the same figure, they will have to pay more money to get it. This happens in big cities like New York or Tokyo. Lots of people move there because of good jobs and fun parties. But the apartments don’t grow bigger just because people arrive. When many people compete for a few houses, landlords can ask for higher rent. It is like bidding on a cool trading card at school.

It is not just about homes. Think about buying bread or milk. If the baker needs to pay more money to his helper because wages go up, he charges you more for the loaf. Also, if it costs more gas to drive trucks to the store, that price gets added to your groceries. So, every time you buy something, a tiny bit extra goes toward helping workers and paying for transport.

This cycle means your pocket money buys slightly less than it did before, even if the items look exactly the same.