Ireland is second most expensive country in Europe, data shows
Ireland is the second most expensive country in Europe with only Danes expected to pay more for a range of goods and services, the latest figures from
Eurostat
have confirmed.
Prices
here are much higher than the European average with things worsening over the last decade, the data suggests.
Back in 2015, when Ireland was still considered a high-priced country, costs here were 28 per cent above the European average. The new figures suggest that gap has climbed to 38 per cent.
When it comes to alcohol and tobacco, prices here are the most expensive and 205 per cent of the average with a significant portion of the price differential due to higher rates of tax and the introduction of minimum unit pricing on alcohol.
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Food and non-alcoholic drink prices in Ireland are third highest in the EU, behind Luxembourg and Denmark/ They are almost 15 per cent higher than the average although this is a slight improvement on recent years. Back in 2020, prices were said to be 21 per cent higher than the European average.
Restaurant and hotel prices are the second highest in the EU, behind only Denmark and 29 per cent above average, while 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 the mean.
There are some areas when Ireland fares better, with clothes prices 1 per cent cheaper and cheaper than in Lithuania, Latvia and Poland.
'We all know that Ireland is an expensive country and these figures from Eurostat today confirm it,' said Daragh Cassidy of price comparison and switching website bonkers.ie
'There are several reasons why prices here are so high. 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.'
He also noted that Irish 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.'
He also pointed out that 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'.
He said 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'.
He highlighted the 23 per cent standard rate of VAT which is 'among the highest in the world' and said 'repeated failures to properly tackle our compo culture mean many businesses continue to pay astronomical insurance costs, which leads to higher prices for consumers.'
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