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.
