Recent shocking figures have unveiled the high cost of living in Ireland, making it the second most expensive country in the European Union for typical goods and services. Prices in Ireland are 38% above the EU average, with only Denmark surpassing in terms of high prices. Back in 2015, prices were 28% above average in Ireland, but since then, the country has been steadily climbing the ranks when it comes to the cost of living.

The European statistics agency, Eurostat, found that prices for alcohol and tobacco in Ireland are the most expensive in the EU, being more than double the EU average. This is attributed to government taxation and recent minimum unit pricing on alcohol. Specifically, alcohol prices in Ireland are the second highest in the EU, nearly double the EU average, with food and non-alcoholic drink prices ranking as the third highest in the EU.

Despite being a significant producer of agricultural produce, Ireland's food prices are only behind Luxembourg and Denmark, almost 15% above the EU average. However, there has been an improvement in recent years, as prices were over 21% above average in 2020. Restaurant and hotel prices in Ireland are the second highest in the EU, while communication costs are almost 40% above average. Additionally, Ireland ranks as the third most expensive country for electricity, gas, and fuel, with prices over 17% above average.

On a positive note, clothing prices in Ireland are actually 1% below the EU average, making them cheaper than in Lithuania, Latvia, and Poland. Non-EU countries like Iceland, Norway, and Switzerland were also included in the research and generally have higher prices than Ireland. Finance expert Daragh Cassidy of Bonkers.ie highlighted various reasons for the high prices in Ireland, including higher wages, lack of competition in certain sectors, high taxation on goods like tobacco, alcohol, and fuel, and lower government subsidies compared to other European countries.

Mr. Cassidy emphasized that Ireland will never be a cheap place to live, noting that countries with high living standards like Switzerland, Iceland, and Denmark also tend to have higher prices. He called for the Government to lower the standard rate of VAT, currently at 23%, which is one of the highest in the world.