Dublin now 13th most expensive city

Unlucky for some, Dublin has slipped to number 13 in a ranking of the world’s most expensive cities to live in, it was revealed today.

But despite dropping two places from 11th last year and the deepening economic slump, the Irish capital is now dearer than London, New York, Rome, Madrid and Berlin.

The worldwide cost of living survey, drawn up by the Economist magazine’s Intelligence Unit, compares the price of a basket of goods in cities around the globe.

Jon Copestake, the report’s author, said he believed it was the first time Dublin had eclipsed London in the league of the world’s priciest cities.

“On instinct, I’d say it is probably the first time that Dublin has been more expensive than London, certainly for a long time,” he said.

“Generally speaking Dublin does come out cheaper than London, so the fact that London is now cheaper is quite telling in itself.”

The twice-a-year study compares the price of around 160 items, ranging from food staples, taxi charges, newspaper prices, clothes, electronics and household goods.

It does not include accommodation costs or house prices.

Because it pits cities against each other by converting prices in dollars, currency exchange rates play a significant part in the outcome of the rankings.

So although, Dubliners may not necessarily notice the drop in two places, international observers can be influenced on whether to travel to or invest in the city.

London dropped from 8th place to 27th, mainly because of a drop in the value of sterling against the dollar.

The fact that the euro has not slid as much as sterling has contributed to Dublin’s soaring over London in the rankings.

“It’s a double-edged sword. Being part of the euro and having a relatively more stable currency is obviously beneficial, but London may become a more attractive destination,” said Mr Copestake.

“It would certainly make people think twice about travelling to Dublin. For example, I’ve changed my holiday plans this years already because of the strength of the the euro, so I’m looking outside Europe for value for money.

“The other example is that you could probably apply that to business investments in the shorter term.

“But let’s not forget that exchange rates change. It may not be very long before London is once again more expensive than Dublin.”

Tokyo is the world’s most expensive city, Osaka Kobe, also in Japan, ranks second, while Paris is the third priciest city in the league.