the data suggests that prices in Ireland are significantly higher than the European average, and this gap has widened over the past decade. In 2015, costs were 28 per cent above the European average; however, current figures show that this has increased to 38 per cent.

Cost Breakdown Across Various Sectors

Alcohol and tobacco prices are the highest, standing at 205 per cent of the average, largely due to higher tax rates and the implementation of minimum unit pricing on alcohol. Food and non-alcoholic beverage prices rank third highest in the EU, trailing only Luxembourg and Denmark, at almost 15 per cent above the average. This represents a slight betterment from 2020, when prices were 21 per cent higher than the European average.

“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.

Restaurant and hotel prices are the second highest in the EU,only behind Denmark,at 29 per cent above average. Communications costs are nearly 40 per cent above average. Additionally, Ireland is the third most expensive country for electricity, gas, and fuel, with prices exceeding 17 per cent above the mean.

However, there are some areas where Ireland offers better value. Clothing prices are 1 per cent cheaper than average and lower than in Lithuania, Latvia, and Poland.

Factors Contributing to High Costs

According to 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 face high insurance and energy costs, which are afterward 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.”

Cassidy 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 suggested that the Government shoudl address factors within its control to mitigate high prices and the cost of living, highlighting the 23 per cent standard rate of VAT and the impact of high insurance costs on businesses.