Australia Named as Most Expensive Country to Live and Work

by Ray Clancy on April 20, 2015

in Australia, General Information, Money, Business and Finance, Property in Australia

People move to live and work in Australia for many reasons, mostly the weather, the outdoor lifestyle and the food and culture, but new research suggests they will find it a more expensive place to be.

For the fourth year in a row, Australia has ranked as the world’s most expensive country in Deutsche Bank’s Mapping the World’s Prices report. Within the country many everyday items are more costly in the cities of Sydney and Melbourne, the report also shows.

moneyAUSTRALIAOverall the fourth annual survey of global prices found that Australia tops the purchasing power parity (PPP) index, meaning that one US dollar has the same purchasing power as $1.12 Australian dollars.

New Zealand and the United Kingdom rated the second and third most expensive countries respectively while in recent years the United States has ranked as the cheapest developed country in the report. In 2015 however, the strength of the USD has narrowed the gap between Australia and the US.

‘A key finding of this year’s survey is the extent to which exchange rate movements impact relative prices across countries. In previous years, Australia had consistently been the world’s most expensive country while the United States had been the cheapest developed country. This year, however, the strength of the USD has significantly narrowed the gap between the two. Similarly, shopping in Europe and Japan now feels a lot cheaper than before,’ the report says.

Australia is more expensive when it comes to buying many everyday products. A big Mac, for example costs more than in many other cities and within the country a pint of beer costs the most in Sydney and Melbourne.

The rate to rent a car for a day is also expensive in Australia, as is public transport in cities such as Sydney and Melbourne where the cost of two litres of cola is more expensive than other parts of the country and motorists are also paying the most in these two cities for fuel.

Sydney, Paris and London ranked as the most expensive places in the world for a weekend away, owing to exorbitant hotel room prices. Indeed, Sydney is 232% more expensive than New York.

Taking a taxi, going to the movies, an i-phone, a pair of Levi jeans and a pair of Adidas sports shoes can cost more in Australia, but not everything in the country is the most expensive in the world. Gym memberships, for example, are more reasonable and most reasonable of all in Melbourne.

Deutsche Bank compiles its lists using both internet prices and secondary sources. The report explains that its research measures prices but not affordability in comparison to local purchasing power.

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