Zürich and Geneva currently rank as the world’s most expensive cities to live in, according to Deutsche Bank’s “Mapping the World’s Prices” report. The study, which compares cost-of-living metrics across 69 international hubs, identifies Switzerland as the global leader in grocery prices, while Australia holds the title for the most expensive locations for cigarettes and alcohol.
The Swiss Cost-of-Living Premium
Switzerland’s dominance in the cost-of-living index is driven largely by grocery prices. Using New York City as a baseline index of 100, Deutsche Bank found that Zürich (115) and Geneva (114) significantly exceed the Big Apple’s costs. San Francisco also ranks above the baseline at 105. For residents and visitors, this means everyday essentials in Zürich are, on average, 15% more expensive than in New York.
Australia’s “Oasis Index” and Sin Tax Impact
If you are looking to save money, Australia presents a unique challenge, particularly regarding “sin taxes.” Deutsche Bank’s “Oasis Index”—named after the band Oasis and tracking the cost of five beers and two packs of cigarettes—ranks Sydney and Melbourne as the most expensive cities globally for these items.
In Sydney, a 20-pack of Marlboro cigarettes costs approximately 430 kroner, a figure 142% higher than the price in Oslo. Meanwhile, Melbourne holds the title for the world’s most expensive store-bought beer, averaging 51 kroner for a half-liter. For comparison, the average price in Oslo is 32 kroner. In both Australian cities, the total cost for the items in the Oasis Index exceeds 1,000 kroner.
The Shifting Global Economic Landscape
Norway’s position in the global cost rankings has undergone a dramatic shift. Sixteen years ago, Norway was the most expensive country in the world, with a price level 65% higher than the United States, bolstered by a strong krone. By 2025, however, Norway has fallen to 12th place, sitting 13% below the U.S. baseline.
Israel now rivals Switzerland at the top of the global price index. Tel Aviv is currently the most expensive city for a McDonald’s meal, costing an average of 202 kroner, compared to 148 kroner in Oslo. Currently, the price level in Switzerland is significantly higher than in Norway, with Israel following at a higher level as well.
Pro Tip: For travelers seeking affordability, Tokyo has become an increasingly attractive destination. Due to a historically weak yen, the city’s price level has fallen 65% relative to the U.S. since 1995. Today, a meal in Tokyo costs roughly one-quarter of what it would in Zürich or New York.
The Cost of Dating in Global Cities
Oslo remains one of the most expensive cities for social outings. The “Cheap Date” index, which calculates the cost of a taxi, public transport, dinner, two cinema tickets, clothing, and two drinks, places Oslo in fourth place globally at 3,642 kroner. Geneva tops this list with a total cost of 4,589 kroner. Conversely, India offers the most budget-friendly options for similar outings, with Delhi (995 kroner), Bangalore (1,024 kroner), and Mumbai (1,111 kroner) leading the way.
FAQ
- Which city is the most expensive for groceries?
According to Deutsche Bank, Zürich is the most expensive city for groceries, followed closely by Geneva. - Why is Tokyo considered an affordable destination?
Tokyo’s affordability is primarily due to a historically weak yen, which has significantly lowered the relative cost of living and tourism compared to the mid-1990s. - What is the “Oasis Index”?
It is a metric used by Deutsche Bank to measure the cost of two packs of cigarettes and five beers, highlighting the impact of high tobacco and alcohol taxes in cities like Melbourne and Sydney. - How does Norway’s current cost of living compare to 2009?
Norway has transitioned from being the world’s most expensive country sixteen years ago to 12th place in 2025, largely due to currency fluctuations.
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