This surely isn't breaking news for anyone who has more than fluttered through the city, let alone tried to rent an apartment.

A new UBS report released today ranks Toronto among the most expensive cities in the world to live in, more expensive than Paris, Los Angeles and Dubai. Excluding the cost of rent, Toronto was ranked eighth in the world, followed by Montreal.

Compared to the 2009 version of the study, both Montreal and Toronto jumped over 10 places mostly on account of the strong dollar. Speaking to the Financial Post, UBS's head of global economic research, Daniel Kalt, explained "Exchange has a big impact.... The Canadian dollar has appreciated something like 20% on the U.S. dollar."

But over and above the exchange rate, the cost of rent is a defining and problematic factor. With rent factored into the equation, Toronto comes in at ninth spot on the list, while Montreal drops behind cities like London and Dubai.

So, could this report be used as more ammunition for the cutbacks Team Ford advocates? Or is it simply another reason for all of us city-dwellers to just grit our teeth?

Photo by wvs / Sam Javanrouh in the blogTO Flickr pool