Deutsche Bank Says Australia Remains To Be The Most Expensive Place While US Is The Cheapest; Canada Is Slightly Cheaper

For four years in a row, Australia tops the survey of global prices indicating that it is the most expensive place to be when you need to buy some everyday stuff, according to the latest survey conducted annually by Deutsche Bank. In that survey, Australia is graded as more expensive by 12 percent compared with the United States.

Australia’s figure however is slightly lower than in 2012, which recorded 63 percent more expensive. In a list of major cities, Sydney ranks fifth and Melbourne is eight. With New Zealand’s appreciating currency, it is dubbed as the second most expensive nation.

In preparing the Deutsche Bank’s report, the institution considered the international standard measure of Purchasing Power Parity, or PPP. This tool enabled the team to make a comparison of how much a bag of goods costs in different nations. Australia is on top on various goods and even services.

For instance, when it comes to a five-star hotel accommodation, Sydney’s prices are 232 percent of the prices in New York. Melbourne’s prices are 72 percent of 5-star hotels' prices in New York.

Two litres of Coca Cola drink in Melbourne is 18 percent more expensive than the price in New York. In Sydney, the price is one and a half of New York’s price. Liquor like beer is surprisingly cheaper in Melbourne and Sydney than in New York; compared with London, San Francisco and Zurich, the price is almost equal.

Even when on the shopping list, Australians pay more for a pair of Levi's jeans and a pair of runners than Americans do, although they pay less than many Europeans. Gadgets, too, are more expensive, especially an iPhone 6, in Australia than in the United States.

Transportation wise, commuters pay more in Melbourne and Sydney than any other city on the list, although the fees are almost close when one commutes in New York. In taking a cab, the fare is higher by 15 percent in Sydney than in New York, but Melbourne is cheaper by 10 percent.

Third most expensive place to live is United Kingdom, while the United States comes in fourth. Fifth is Canada, mainly due to its dollar decline.

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