Sydney and Melbourne have both made the list of the top 10 most expensive cities in the world.
The Economist Intelligence Unit's (EIU) 2012 Cost of Living index has named the most expenssive cities in the world to live based on a the costs of a range of goods and services in addition to housing. Sydney and Melbourne both cracked the top 10, with Sydney ranking as seventh most expensive and Melbourne ranking eighth. By comparison, New York ranked 47th.
Zurich topped the list, overtaking Tokyo as the world's costliest city. European cities made up five of the top 10, and the EIU commented that "mature markets" such as those in Western Europe tended to be the most expensive. However, it blamed the high Aussie dollar for catapulting Sydney and Melboure into the top 10.
"Local inflation in mature markets always has far less influence on the relative cost of living than the currency movements of the countries in question. This also explains the recent presence of Australian cities like Sydney and Melbourne in the ten most expensive locations as last year saw the Australian dollar pass parity with the US dollar from holding half that value a decade ago," the EIU said.
Sydney dethroned as second costliest city