Ireland is the second most expensive EU country, figures show

Ireland is the second most expensive country in the European Union — behind only Denmark — with prices just over 38 per cent above the average in the bloc, according to new figures from Eurostat.

Data from the EU's statistical agency show that back in 2015 prices in Ireland were 28 per cent above average.

When it comes to alcohol and tobacco, prices in Ireland are the most expensive in the EU at 205 per cent of the average. Much of this is due to Government taxation, and more recently, minimum unit pricing on alcohol.

For alcohol alone, prices are the second highest in the bloc — after Finland — at almost 198 per cent of the EU average.

Food and non-alcoholic drink prices in Ireland are the third highest in the EU, behind Luxembourg and Denmark, at almost 15 per cent above average. However, this is an improvement on recent years, as prices were over 21 per cent above average in 2020.

Restaurant and hotel prices are the second highest in the EU, behind only Denmark, at 29 per cent above average.

Communications costs are almost 40 per cent above average. Ireland is also the third most expensive country for electricity, gas and fuel with prices over 17 per cent above average.

Meanwhile, clothing prices are actually 1 per cent below the EU average and cheaper than in Lithuania, Latvia and Poland. Meanwhile, the price of furniture, carpets and flooring is only 6 per cent above average, while the cost of household appliances is 9 per cent higher.

Non-EU countries Iceland, Norway and Switzerland were also included in the research and generally have prices higher than Ireland.

Daragh Cassidy from price comparison site bonkers.ie said the figures confirmed the widespread belief that Ireland is an expensive country.

"There are several reasons why prices here are so high," he said. "These include: our higher wages, a lack of competition in certain sectors, high taxation on certain goods such as tobacco, alcohol and fuel, and lower government subsidies in certain areas such as public transport and childcare compared to our European neighbours.

"Businesses are also faced with high insurance and energy costs, which then get passed on to consumers.

"Ireland will never be a cheap place to live. And it's worth noting that many of the world’s most expensive countries such as Switzerland, Iceland and Denmark also have some of the highest standards of living in the world.

"The problem is that wages in Ireland, while high by international standards, generally don’t match the salaries in these countries. At the same time, taxpayers in more expensive countries tend to get back more from the Government in terms of better and more affordable healthcare, childcare and public transport — though there have been welcome improvements made here in Ireland in recent years.

"At a minimum, the Government should look at measures that are within its control to lower the impact of high prices and the cost of living in Ireland."