This gives you exactly what you want:
d = { k : tuple(map(list, zip(*d[k]))) for k in d }
Conclusion:
{'city2': ([1993, 2.5], [1995, 3.6], [1997, 4.7], [1999, 5.8]), 'city1': ([1990, 1.5], [1991, 1.6], [1992, 1.7], [1993, 1.8])}
Also, consider a different name than dict, since this is the name of an inline class dict.
zip(*d[k]) zip(d[k][0], d[k][1]), .
map(list, ...) , zip ( python2 )
tuple(...) map/generator , .