TEN years ago Australian cities did not even rate in the top 50 most expensive in the world. Now Sydney is ranked third, behind Tokyo and Osaka, a new report shows.

The price of unleaded petrol in Sydney is three times higher than it was 10 years ago. Table wine has nearly tripled in price, the price of bread has more than doubled, and cigarettes have soared to nearly four times as much, the Economist Intelligence Unit worldwide cost of living index 2013 shows.

Expensive living ... the report highlights the health of the nation. Credit:Jack Atley

Sydney is not the only Australian city featured in the top 10. Melbourne was ranked fifth, behind Oslo.

An economist for the Commonwealth Bank, Savanth Sebastian, said the strong dollar was behind the high living costs in Australia.