Melbourne, Sydney most expensive in world for beer and cigarettes, study finds

Melbourne and Sydney have emerged as the world’s most expensive cities for beer and cigarettes, according to the latest global cost-of-living analysis. The Deutsche Bank ‘Mapping the World’s Prices’ report, which monitors 69 major cities across six continents, indicates that Australian residents are paying a significant premium for discretionary goods compared to their peers in Europe and North America.

This sharp rise in costs is largely attributed to Australia’s aggressive excise duties on ‘sin’ goods, combined with high local overheads for the hospitality sector. While the report acknowledges the high standard of living in the harbour city and the Victorian capital, it notes that the soaring price of a pint and a pack of tobacco is increasingly impacting the disposable income of urban workers, outpacing inflation in other global financial hubs.

“What was once considered a staple of Australian social life has now become a high-end commodity, reflecting a broader shift in our national economic landscape.”

As the gap between local prices and global averages widens, the data serves as a stark reminder of the inflationary hurdles facing Australians in 2024. With the cost of a night out reaching record highs, policymakers and consumers alike are forced to reconcile the benefits of our high-wage economy with the reality of an increasingly expensive domestic market.