Sydney and Melbourne Top Global Rankings for Cost of Beer, Cigarettes

Sydney and Melbourne have been identified as the world's most expensive cities for purchasing beer and cigarettes, and rank highly for public transport costs, according to new data from Deutsche Bank. The bank's annual cost of living index, which surveys 69 cities globally, found that Australia's two largest urban centers incurred the highest prices for a night out, largely attributed to "relentless" "sin taxes."

Melbourne led the rankings, with the cost of five beers and two 20-packs of Marlboros totaling $111.20 USD ($158.89 AUD). Sydney followed closely at $109.50 USD ($156.47 AUD). The report noted that Melbourne's "Oasis Index"—a measure of the cost of five beers and two packs of cigarettes—has increased by 89% over the past decade, while Sydney saw an 82% rise in the same period.

Globally, the cheapest cities for these items were Shanghai ($10.40 USD), Rio de Janeiro ($11.70 USD), and Cairo ($12.10 USD). New Zealand's Auckland and Wellington ranked third and fourth, respectively, with Oasis Index figures of $68.60 USD and $67.10 USD. London completed the top five at $63.90 USD.

Melbourne and Sydney have consistently held the top positions for the Oasis Index since 2012.

Public Transport Costs

In terms of public transport, Sydney was ranked as the second most expensive city globally, with a monthly pass costing $151 USD ($218 AUD). London took the top spot for public transport at $268 USD per month. New York followed in third place at $140 USD, and Melbourne was fourth at $138 USD ($197 AUD).

Industry and Government Perspectives

Sabrina Kunz, head of the Independent Brewers Association, stated that the data indicates a night out in Australia is becoming "completely unaffordable." She attributed this to high excise taxes on alcohol and tobacco, warning that such costs discourage social gatherings and could negatively impact society. "We're seeing hospitality businesses close at an alarming rate," Kunz said. "We're seeing mental health overtake cancer as the world's number one health concern, and we're making it impossible for people in Australia to get together to have a round of beers with their mates."

Federal Minister Clare O'Neil, however, suggested that the rising prices are less of a tax issue and more an "enforcement problem." She noted that organizations like the Cancer Council and the Australian Medical Association have voiced concerns that high taxes could inadvertently encourage smoking and benefit large tobacco companies. Kunz countered that alcohol and tobacco excises represent a "failure of public policy."