Australia's largest cities are home to world's most expensive beer, cigarettes, public transport

Australia's two largest cities, Melbourne and Sydney, have been ranked among the world's most expensive places for beer, cigarettes, and public transit, according to a major global cost-of-living report. The Deutsche Bank's Mapping the World's Prices 2026 report identified Melbourne as the world's most expensive city for domestic beer and second in the world for a pack of cigarettes, while Sydney placed second for cigarettes and third for beer, behind Singapore.The annual study analyzed living costs across 69 global cities, tracking price shifts over the past year and the preceding decade.A 500 ml bottle of domestic beer in Melbourne costs an average of US$5.27, making it the most expensive city worldwide for beer in the 2026 index. Singapore followed at $4.49, while Sydney took third place at $4.10. Cigarette prices in Australia proved even higher. A pack of 20 costs $44.50 in Sydney and $42.40 in Melbourne.The report attributes these elevated prices primarily to Australia's steep excise taxes on alcohol and tobacco. Over the past decade, the cost of purchasing five beers and two packs of cigarettes grew by 89% in Melbourne and 82% in Sydney. Cigarette prices alone surged even more dramatically, jumping 123% in Melbourne and 130% in Sydney.Public health researchers note that high tobacco taxation has successfully driven down smoking rates.Professor Coral Gartner from the University of Queensland was quoted by ABC as saying that rising prices remain one of the most effective incentives for smokers to quit.Australian Institute of Health and Welfare data shows adult daily smoking prevalence has dropped to 5.6%, among the lowest rates recorded in high-income nations, according to the news site. Transit costs in both Australian metropolises also placed near the top of international charts.With a monthly transit commitment averaging roughly $150, Sydney ranked second globally behind London ($270), while Melbourne ranked fourth at over $130, trailing New York ($140). Researchers noted that both Australian cities operate flexible capping structures rather than traditional flat-rate monthly passes.Despite high transit and vice costs, fuel prices in both Australian cities remain relatively moderate compared to global peers.Hong Kong continues to post the world's highest gasoline prices, while Cairo offers the lowest.On earnings, Zurich led the global rankings for average monthly salaries. Melbourne placed 11th and Sydney 14th globally, although wage growth in both Australian hubs has lagged behind several key international markets over the past decade.Economists emphasize that high living costs in Australia are partially offset by strong local labor markets, solid compensation, and low unemployment. After deducting rent expenses, Melbourne ranked ninth globally for disposable income, while Sydney placed 29th.