Aussie cities becoming world's priciest

The strength of the Aussie dollar is making Sydney, Melbourne, Perth and Brisbane some of the world's most expensive cities, a global survey shows.

It's now cheaper to live in London, Vienna, Rome, Berlin, Hong Kong and Beijing than most Australian capitals, the Economist Intelligence Unit's Worldwide Cost of Living survey found.

Sydney is now the sixth priciest city in the world, up from 32nd place two years ago.

Melbourne jumped from 38th to seventh.

Perth and Brisbane, meanwhile, are ranked 13th and 14th.

Survey author Jon Copestake said the strength of Australia's dollar was partly to blame for skyrocketing living costs Down Under.

The Aussie reached parity with the US dollar in November 2010 and hit a peak of 110.11 US cents on May 3, its highest since being floated on the foreign exchange market in 1983. It is currently trading around 107 US cents.

"Rising domestic prices, partly due to rising oil and commodity prices, have been compounded by the strength of the Australian dollar, which achieved parity with the US dollar earlier this year, compared to being worth around half that much 10 years ago," Copestake said.

The Economist Intelligence Unit's Worldwide Cost of Living survey also found Australian cities were among the most expensive for business trips.

Copestake warned visitor numbers could be hit if Australia's cost of living continued to escalate.

"Australia has long been an attractive destination, with Melbourne and Sydney becoming international cities in their own right," he said.

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