AUSTRALIA has become one of the most expensive places on the planet, as the price for everything from a Big Mac to an iPhone exceeds that of most other major developed countries.

The surge in prices over the past decade has seen Sydney become the most expensive destination for a weekend getaway in the world, more than double the cost of New York.

In the past 10 years prices have soared around 200 per cent for average items such as bread, wine cigarettes and petrol as households battle against a strong Australian dollar while the rest of the global economy slows.

Despite a slight fall in prices over the past 12 months, Australia and Japan are rated by the Deutsche Bank survey as the most expensive in the world, while the US is the cheapest country.

Only France and Singapore are more expensive locations for a pint of beer. Australian pubs charge $US8.20, almost double the price in the UK, New Zealand and Germany.

Deutsche Bank global strategist Sanjeev Sanyal said prices in Australia are among the most expensive in the world, overall costs being higher than most of its rivals and most other cities offering some cheaper services.

"Singapore is a cheap place to get an MBA, but not if you want a car or a pair of Levi's jeans. Indian cities are usually cheap, but pizzas cost the same as New York," he said.

"But Australia and Japan are very expensive across a wide range of products, while the United States is generally the cheapest developed country."

And it is not just services that are overpriced. The cost of a new Volkswagen Golf at $US37,442 is almost $US8000 than in the UK and more than $US10,000 more expensive than buying the same model in New York.

The survey just shows average prices in US dollars and lets the price comparisons tell the story rather than drilling down into the data.

Item/Australian price/US price

Big Mac/$4.90/$4.37

Two litre bottle of Coca-Cola/$3.61/$2.35

Pint of beer/$8.20/$6.00

Pair of Levi's 501/$115/$56

iPhone/$819.33/$649

20 pack of Marlboro/$17.21/$12.31

Cab ride for 3km/$10.77/$10.75

Movie tickets/$17.95/$13

Men's haircut in CBD/$27.69/$30

Daily car rental/$95.50/$95.80

Five-tar hotel room/$933(Sydney)/$419(New York)

New Volkswagen Golf/$37,442/$26,044

*Deutsche Bank research. All prices in US dollars