Government to press retailers on prices as Ireland revealed to be the costliest country in the EU
Irish consumers pay more for goods, services, and alcohol and tobacco than anyone else in the union.
Ireland is now the most expensive country in the EU with Irish consumers paying more for goods, services, and alcohol and tobacco than anyone else in the union.
They also pay some of the highest prices in Europe for gas, electricity, public transport, communication services, hotels, and dining out as the cost-of-living crisis continues.
Only clothing and furniture costs are in line with EU average prices.
The figures from the European Commission came as the Government told retailers on Wednesday that it wants to see more food price reductions by August.
Minister of State at the Department of Enterprise, Trade, and Employment Neale Richmond met with members of the Retail Forum and was told that prices have been reduced on up to 700 products since they last met in May. However, Mr Richmond said more can be done and said he would be writing to retailers in August looking for proof of further price cuts before the forum meets in September.
However, a source who attended the meeting said Mr Richmond gave “no warning whatsoever” and that the recent report by the Competition and Consumer Protection Commission “exonerates” retailers.
The latest cost-of-living figures are contained in the European Commission’s report on household consumption expenditure for 2022, which is based on price surveys covering over 2,000 consumer goods and services across 36 European countries, including the 27 EU member states.
The data shows that 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. The problem has been getting worse since 2015 when Irish prices were 28% above the average. They have increased steadily every year since.
Only Switzerland and Iceland had higher overall consumer prices in Europe last year.
The figures show Ireland had the second highest energy prices in the EU after Denmark, with the cost of electricity and gas 38% above the EU average, and that Ireland was the fourth most expensive country in the EU for food and non-alcoholic beverages in 2022 with prices 15% above average.
Only Denmark, Luxembourg, and Malta were more expensive for basic grocery items on which consumers spend almost a fifth of their income.
The high level of overall prices in Ireland is largely driven by expensive alcohol and tobacco, energy, transport, and communications prices.
This country had the most expensive alcohol and tobacco in the EU, with prices more than double the EU average and 3.3 times more expensive than the cheapest EU country, Bulgaria.
The report blames the large price variation for those products on differences in taxation in countries.
Irish consumers also faced high prices for communication services which were 56% above the EU average, and the third most expensive in the EU after Belgium and Greece.
Eating out and tourist accommodation was 28.5% above the EU average, only behind Denmark, Finland, and Luxembourg.
Motoring costs in Ireland were the third highest in the EU and 13% above average levels while, despite recent Government moves to reduce public transport fares, prices were 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 Ireland was 2% below the EU average last year, while furniture prices were just 1% over the EU average.
Clothing prices in Ireland are comparatively cheaper than the majority of EU member states, where Denmark is the most expensive. The price of footwear in Ireland is 5% above the EU average, and household appliances are 6.5% above the EU average.
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