Recent data from Eurostat has revealed that Ireland is the second most expensive country in Europe, with only Denmark surpassing it in terms of the cost of goods and services. Prices in Ireland are significantly higher than the European average, showing a steady increase over the past decade.

In 2015, Ireland was already considered a high-priced country, with costs sitting at 28% above the European average. However, the latest figures indicate that this gap has widened to 38%.

Alcohol and tobacco prices in Ireland are the highest in Europe, at 205% of the average. This price difference is largely attributed to higher tax rates and the implementation of minimum unit pricing for alcohol.

Food and non-alcoholic drink prices in Ireland rank as the third highest in the EU, trailing behind Luxembourg and Denmark. Despite being nearly 15% above the average, this marks a slight improvement compared to previous years. In 2020, prices were reported to be 21% higher than the European average.

Restaurant and hotel prices in Ireland are the second highest in the EU, following Denmark, and are 29% above the average. Communication costs are nearly 40% higher than the European mean.

Ireland also ranks as the third most expensive country for electricity, gas, and fuel, with prices exceeding the average by over 17%.

However, there are some areas where Ireland offers more affordable prices, such as clothing, which is 1% cheaper compared to countries like Lithuania, Latvia, and Poland.

Daragh Cassidy from bonkers.ie, a price comparison and switching website, emphasized that high prices in Ireland can be attributed to various factors including higher wages, lack of competition in certain sectors, high taxation on goods like tobacco, alcohol, and fuel, and reduced government subsidies in areas like public transport and childcare.

He also highlighted the challenges faced by Irish businesses due to high insurance and energy costs, which are ultimately passed on to consumers. Cassidy noted that while Ireland may never be a low-cost country to live in, it is essential for the government to take steps to alleviate the impact of high prices and the overall cost of living.

He suggested that the government should consider measures like reviewing the 23% standard rate of VAT, which is among the highest globally, and addressing issues related to insurance costs that contribute to inflated prices for consumers.