New data confirms Ireland to be the most expensive country in Europe for household goods

European Commission's figures show Switzerland and Iceland are the only European countries with higher consumer prices

The high level of overall prices in Ireland is driven by expensive alcohol and tobacco, as wejll as high prices of energy, transport, and communications. Picture: iStock

Ireland was the most expensive country in the EU for household expenditure on goods and services last year with prices 46% above the EU average.

New figures published by the European Commission confirm the high cost of living in the Republic in 2022 with Switzerland and Iceland the only European countries with higher overall consumer prices.

The high level of overall prices in Ireland is largely driven by expensive alcohol and tobacco, energy, transport, and communications prices.

The figures revealed that Ireland also has the most expensive alcohol and tobacco in the EU with prices more than double the EU average.

Alcoholic beverages and tobacco products in Ireland are 116% over average EU prices and 3.3 times more expensive than the cheapest EU country which is Bulgaria. Consumers spend on average 6% of all household expenditure on such products.

The report on household consumption expenditure is based on price surveys covering more than 2,000 consumer goods and services across 36 European countries including the 27 EU members.

The data confirms that Ireland has the unenviable position of most expensive country in Europe for many consumer goods. Source: Eurostat

It claimed the large price variation for alcohol and tobacco was mainly due to differences in taxation of such products.

The report also revealed that Ireland was the fourth most expensive country in the EU for food and non-alcoholic beverages in 2022 with prices 15% above the EU average.

Only Denmark, Luxembourg and Malta were more expensive than Ireland for basic grocery items last year on which consumers spend almost €1 of every €5 in income.

Ireland also has the second highest energy prices in the EU after Denmark. The figures show the cost of electricity and gas in the Republic is 38% above the EU average.

Irish consumers also face high prices for communication services which are 56% above the EU average — the third most expensive in the EU after Belgium and Greece.

The cost of restaurants and hotels is 28.5% above EU average prices for eating out and tourist accommodation — Ireland is the fourth most expensive after Denmark, Finland, and Luxembourg.

Motoring costs in Ireland are the third highest in the EU and 13% above average levels, while public transport prices here are 27% over the EU average, making them the joint fourth most expensive together with Denmark after Sweden, Finland, and the Netherlands.

On a positive note for Irish consumers, the cost of clothing in the Republic was 2% below the EU average last year, while furniture prices are just 1% over the EU average.

The figures show that prices for clothing in Ireland are cheaper than in a majority of EU member states where Denmark is the most expensive followed by Sweden.

The price of footwear in Ireland is also relatively moderate by EU standards at 5% above average levels.

It represents the 13th most expensive country within the EU for footwear.

Similarly, the cost of household appliances in Ireland is relatively cheap at just 6.5% above the EU average — the ninth most expensive in the EU.

Consumer electronics in Ireland are 6% above the EU average which makes it the 7th most expensive of all EU member states for such products.

In contrast to Ireland, overall consumer prices in Romania were the lowest in the EU with overall costs 42% below the EU average, while Turkey has the cheapest cost of living in Europe with prices 60% below the EU average.