12/05/2014 - 14:16

Australia the priciest major economy

12/05/2014 - 14:16

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Australia has been identified as the world's most expensive major economy, with the cost of living in Sydney and Melbourne now greater than in Tokyo, London and New York City.

Australia the priciest major economy

Australia has been identified as the world's most expensive major economy, with the cost of living in Sydney and Melbourne now greater than in Tokyo, London and New York City.

Deutsche Bank's latest annual survey of global prices reveals Australia has retained its status as the priciest of all developed countries for the third straight year, despite a lower exchange rate tempering prices in US dollar terms.

Australia outranks New Zealand, Japan, Canada and France on price level indicies derived from separate figures published by the International Monetary Fund and the World Bank and adjusted for exchange rate movements.

The cost of living in Sydney has soared since the beginning of the 2000s, when it was ranked among the cheapest major cities in the world. 

Sydney is now considered the fifth most expensive major city in the world, behind Singapore, Paris, Oslo and Zurich, with Melbourne also ranking highly.

The harbour city was awarded the dubious honour of being the most expensive major city in the world for a weekend getaway, including two nights at a five-star hotel, meals, car rentals and retail shopping.

Sydney and Melbourne are also relatively expensive for public transport, a beer in a neighbourhood pub and a ticket to the movies but petrol, gym memberships and taxi fares are relatively inexpensive.

The US is generally considered the cheapest developed country but prices in Japan have dropped off significantly over the past two years amid persistent deflation.

Prices in China have steadily increased, meanwhile, with a number of branded goods more expensive in China than in the US.

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