Australia has become one of the world's most expensive places to live, says a new report.

The 'Price Drivers' report, delivered by the Centre for Independent Studies', finds that Australia has become one of the most expensive countries in the world for shopping, business, and day-to-day living.

The report sampled prices of a selection of goods, including electronics, clothing, furniture, and CDs. The total price of this basket showed Australia to rank as second most expensive to Japan.

Shopping as a whole is shown to be an expensive hobby. The report revealed that it's more expensive to park in Sydney than in London or New York. It's also much more expensive to watch a film at the cinema in Australia. Higher prices for books, CDs, and DVDs, meanwhile, are driving Australians to buy overseas and import them in.

Australian retailers face high overheads, with the Australian minimum wage much higher than many other countries. High street shopping needs to become more affordable, as more turn to the convenience of shopping with credit cards online.

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Ben Smith