If asked what country is the most expensive country to live in, USA, France, New Zealand or Canada would easily come to mind. However, recent study by Deutsche Bank’s mapping the world’s prices reported that for the fourth year in a row, Australia ranked number one as the most expensive country to live in. Wait, what? It’s no joke. Australia has managed to best them all, beating New Zealand a known expensive country for the title. And for good reason too, whoever lives in Australia can attest to its expensiveness. Overall 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. United States meanwhile takes the throne for the cheapest developed country in the world. A key finding of this year’s survey is the extent to which exchange rate movements impact relative prices across countries. This international flow of money gives an effect to which is felt in every individual nation.
In Australia, ordinary people feel the high cost of everyday products, even more so when they compare it to other nation. Buying food, renting a car, going to movies or checking in a hotel, people who want to move to Australia will likely find it an expensive place to live in. Being the most expensive country in the world, that should be expected.
Furthermore another survey revealed that Sydney is the fifth most expensive city in the world. In the cost of living index, Singapore, Paris, Oslo and Zurich all rank higher, three rankings ahead of Melbourne in eighth place. Having two cities rank top 10 on the Deutsche Bank’s report testifies Australia indeed tops the most expensive countries to live in. A five star hotel room in the harbor city costs a solitary-tear-inducing USD $880, compared to USD $273 in Melbourne and USD $379 in New York. Even the price of the good old cigarette is higher here, Australians pay more for their cigarettes than anyone else in the world; for every pack, 70 percent of the cost is paid to the government in taxes.
Living in the most expensive country in the world?
If you live in Australia you will need a little more effort in budgeting your expenses. It will not be easy but surely it is not that hard especially if you are familiar with how everything costs. The good news is that the average salary of workers in Australia is a bit higher than in other countries, this balances the scale a little bit. As long as you watch what you spend and don’t over charge on your cards you will be fine.