Cost of living in Sydney and Melbourne grows sharply

Residents of Sydney and Melbourne are being forced to pay excessive amounts to cover everyday living costs.

The latest World Cost of Living Survey has indicated that the two Aussie cities are now nearly 50 per cent more expensive than New York.

It seems that the savings accounts of people in these cities have taken something of a battering in the past decade, as report author John Copestake suggested that Melbourne was more than 25 per cent cheaper just ten years ago.

He stated that the rise of the Aussie dollar is behind much of the price increases, which has forced up the value of essential items such as petrol and bread.

Both cities featured in the top ten most expensive places in the world, although they are still some way behind Zurich, Tokyo and Geneva, which are deemed to be the least affordable areas on the planet.

Figures recently released by the Australian Bureau of Statistics showed that Aussies reined in their spending in the run up to Christmas, with retail activity declining by 0.1 per cent in seasonally adjusted terms.

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