On average, Australians are paying no more this quarter for their cappuccino than last quarter. However, some individual cities have seen a drop in prices, most notably Sydney with a drop of 12c in the cost of an average cup.

According to the 2012 Q3 Gilkatho Cappuccino Price Index, Perth will be the first city to break the $4 barrier. Sydney remains the most competitive market with an average price 21c below next cheapest cities Canberra and Melbourne.

This quarter the Gilkatho CPI also includes Hobart for the first time (with 95 venues surveyed). After Perth, Hobart is the second most expensive place for a takeaway cappuccino in Australia.

Gilkatho managing director Wayne Fowler said the price of a cup of coffee has little to do with the cost of coffee beans and more to do with overhead costs and price competition.

“Regular cafés are now starting to face competition from other outlets offering good quality coffee. 7/11 for example have recently introduced automatic machines making high-quality coffee from freshly ground beans for just $1 a cup,” Wayne said.