High prices hit Brits seeking cheap U.S. trips

By Jennifer Hill

LONDON (Reuters) - A weak U.S. dollar is good news for British holidaymakers heading across the pond -- but they might get less of a bargain than they think.

The United States is the most expensive holiday destination of 15 countries worldwide, according to the Post Office's latest holiday costs barometer.

An iPod or PlayStation 3 will probably be cheaper to buy in the States, especially given the dollar's current low level of around two to the pound.

Sterling rose further above the $2 mark earlier this week, hitting levels not seen for a quarter of a century, as investors awaited a widely expected Bank of England interest rate hike.

But the index, published in April, shows that travellers will have to fork out up to four times more for essentials -- such as mineral water, beer, sun-cream and insect repellent -- than in emerging holiday destinations, such as Bulgaria.

The U.S. was found to be the most expensive country to buy a shopping basket of holiday items, including a cup of coffee, a British newspaper and a postcard and stamp to send a greeting home.

The 10 items cost a total 69.41 pounds -- more than twice the equivalent cost in the five cheapest destinations: Bulgaria, Egypt, Thailand, South Africa and Portugal.

Bulgaria proved by far the cheapest country with a total shopping basket cost of just 16.86 pounds.