Prices for goods and services in Ireland 46% above EU average, new figures show

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

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 confirmed the high cost of living in the Republic in 2022, with only Switzerland and Iceland having higher overall consumer prices in Europe.

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

The figures revealed 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 member states.

Differences in taxation

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

The report also revealed 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.

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 costly 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 average prices for eating out and tourist accommodation in the EU — the fourth most expensive after Denmark, Finland and Luxembourg.

Motoring costs

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 prices of clothing in Ireland are comparatively cheaper than 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 seventh 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.