Australians are living in the most expensive G20 economy in the world. A study by the World Bank, drawing on 2011 data, shows the costs of goods and services in Australia are elevated around the levels of pricey European countries Switzerland, Norway, Denmark and Sweden.
Overall, Australia ranks as the fourth most expensive economy out of 177 countries measured by the price level index (PLI). It takes into account people’s purchasing power and a country’s exchange rate.
Economists believe the major factors that have pushed up local prices are the mining boom, high exchange rate, unbroken economic growth for 22 years, oligopolistic major industries, relatively low unemployment and high labour costs for business.
The Economist Intelligence Unit’s worldwide cost of living survey published in January this year found Sydney and Melbourne were more expensive than New York and London and among the top 10 most expensive cities in the world. They ranked fifth and equal sixth, behind Singapore, Paris, Oslo and Zurich.
Source: Fairfax Media
