The cost of books, coffee, condoms and digital cameras rocketed between 2009 and this year, said Price Runner, a shopping comparison website.
In 2007 the UK’s capital was the second most expensive city in the world, but a retail price war caused prices to plummet in 2008 and 2009.
But now they are on the up again, leaving London at number 17 in the league of 32 cities.
Mumbai came out as the cheapest city, followed by Bangkok.
For the fourth year in a row Oslo was the most expensive city for consumer goods, the survey said.
In Oslo a pint of milk is 48 per cent more expensive than in London, according to the study.
In Europe, eastern cities (Vilnius, Prague and Warsaw) continued to have the cheapest consumer prices.
Out of 21 European cities surveyed, 14 were more expensive than London.
“If you’re choosing to shop in Europe, London is still relatively cheap. Many retailers are maintaining low prices across tech and gadgets in a bid to kick start the economy,” said Marc Thomas of PriceRunner.
Yet London’s prices are expected to rise further next year, as the government increases VAT to 20 per cent on 4 January.