Alcohol, tobacco costs 63% above EU average
Even though prices have been slashed in our supermarkets, restaurants and hotels, Ireland ranks as the fifth most expensive country for consumers, according to a European-wide survey.
The overall price comparison looked at everything from food and clothing to rent and the purchase of electronics.
Ireland only trails behind the traditionally pricey Nordic countries in the cost stakes and is much more expensive than the UK where prices are 15% less.
The Eurostat survey shows how alcohol and tobacco is 63% more expensive in Ireland compared to average European prices. And, despite the sharp increase in bargain breaks and early bird menus, Irish hotels and restaurants are still 26% more expensive then our European counterparts.
Food and non-alcoholic drinks in the country’s supermarkets and shops are 18% more expensive.
Interestingly, the cost of clothing is Ireland is less than the European average, just 92% of prices elsewhere, while electronic goods are also selling at competitive prices or just 93% of elsewhere.
Denmark is the most pricey country in Europe according to the research, coming in at 42% over the European average followed by Sweden, Finland and Luxembourg.
The price comparison showed how prices in Spain and Greece were below average, coming in at 97% and 95% of the EU average while prices 20%-30% below the average were recorded in Estonia, Malta, the Czech Republic, Latvia and Slovakia.
The cheapest alcohol in Europe can be found in Macedonia, Serbia and Albania.
Eurostat say alcohol and drink price differences across Europe is largely due to varying excise rates in the different countries.
The survey also shows that while the Irish consider the price of cars as exorbitant here, they are just 8% over the European average. Cars, motorbikes and regular bikes in Denmark are 67% above the European average.
Last night, Irish Farmers’ Association president John Bryan said the high cost of food in Ireland confirms the need for Government action to curb the dominant position of the multiples in the Irish market.
“Ireland is the fifth highest priced country in the EU for food and non-alcoholic beverages, with consumer price levels 18% above the EU average in 2011.
“In contrast, farmgate prices in Ireland are on a par with other European countries.
“The Government must move to introduce a code of practice for the retail multiples immediately, as there has been an even greater concentration of control in the retail food sector in the last 12 months.
“Three retailers now account for nearly 80% of the grocery market,” he said.
* Fuel prices are falling across the country, a trend likely to continue for the another few weeks, according to Automobile Association (AA) Ireland.
The cost of a barrel of Brent crude oil, which dictates European fuel prices, has fallen from $106 to $90 since March and it takes several weeks for the price at the pumps to catch up.
The move will be warmly welcomed by motorists who have seen fuel costs rise month after month since last November. These price increases have also come on top of five tax increases on fuel since 2008.
“We’re seeing prices drop already and they look set to fall for another two weeks, meaning that prices could have fallen by up to by 8-10 cent by the end,” said director of public affairs Conor Faughnan. However, up to 60% of the cost of Irish fuel goes on tax and so that will dampen the impact of the falling oil prices.
“We used to be a low to medium fuel tax country. Now we’re super-taxed. The price reduction will also be lessened because the euro is so weak at the moment compared to the dollar thanks to the euro crisis,” he said.
Mr Faughnan said 55c of the cost per litre reflected the price of crude oil. AA’s fuel prices monitor shows that the average cost of unleaded petrol is 162.9c per litre while diesel stands at 153.6c.
This compares with petrol prices in May of 165.9c for petrol and 157.5c for diesel.
Claire O’Sullivan
CONNECT WITH US TODAY
Be the first to know the latest news and updates
