Australia among world's most expensive countries: World Bank

Australia has been named one of the world's most expensive economies in a World Bank study.

Office employees crossing a road on their way home in the central business district of Sydney. (AAP)

The study ranked Australia as the fourth most expensive economy out of 177 countries, based on the price level index (PLI).

The measure is based on a consumer's purchasing power and a country’s exchange rate.

Ahead of Australia were Switzerland, Norway, Bermuda, with Denmark taking fifth place.

The cheapest economies were Egypt, Pakistan, Myanmar, Ethiopia and Lao People's Democratic Republic

The report - based on 2011 data - follows the release of a global cost-of-living index that named Sydney and Melbourne as more expensive than New York and London. The study was published by The Economist Intelligence Unit in January.