In the European Union’s latest statistics, Ireland has been identified as the second most expensive country in terms of cost of living among the twenty-seven EU member states, second only to Denmark. The cost of goods and services in this small Western European country has surpassed that of well-known high-consumption countries like Norway.
According to the EU statistics, prices of goods and services in Ireland are 42% higher than the EU average. Over recent years, prices in Ireland have been steadily rising. Data from 2015 showed that prices in Ireland were 28% higher than the EU average, and since then, the price gap has been widening annually. In Ireland, prices for tobacco, alcohol, energy, transportation, and communication now far exceed those of other EU countries.
The EU statistical agency evaluated the prices of over 2,000 goods and services and found that in the past year, Irish prices for goods were 142% of the EU average, only 1% lower than Denmark.
In terms of rent, mortgage interest rates, natural gas, electricity, and housing costs, Ireland has the highest prices in the EU, at more than double the average level. The price level for restaurants and hotels in the country is 28% higher than the EU average, energy costs exceed the EU average by 18%, and transportation costs are 15% higher than the EU average.
However, when it comes to clothing, Ireland is one of the few EU countries where prices are relatively cheaper, below the average by 4%.
Spokesperson Daragh Cassidy from the Irish price comparison website Bonkers stated, “The significant price difference between Ireland and neighboring countries is truly shocking. Prices now even surpass those of Norway.”
Cassidy noted that although wages in Ireland are also above the EU average, for most people, incomes do not exceed 40% of the average level. He also mentioned that Ireland’s standard VAT rate stands at 23%, the highest in the world, and the alcohol consumption tax rate is also the highest globally.
Overall, there is a significant disparity in price levels among European countries. Switzerland, a non-EU member, is the most expensive country in Europe, exceeding the EU average by 74% last year, followed by Iceland at over 56%.
Among EU countries, after Denmark and Ireland, the countries with higher prices are Luxembourg, Norway, Finland, the Netherlands, Belgium, and Sweden. France and Germany have relatively cheaper prices, around 10% higher than the EU average.
On the other hand, the EU countries with the lowest price levels are Bulgaria and Romania, with prices 60% lower than the average level.
Another ranking reflecting similar trends is the list of most expensive cities. According to Mercer’s “2024 Cost of Living Survey” released on June 17th, Dublin, the capital of Ireland, ranked among the top 50 cities globally for the highest cost of living for foreign employees of multinational companies.
Mercer researchers conducted field visits to 227 cities across five continents, collecting prices of over 200 items, including food, clothing, transportation, housing, household goods, and entertainment, and evaluated the housing and cost of living for company expatriates in these locations based on US dollars.
The survey indicated that Dublin rose by 10 places, now ranking as the 41st most expensive city.
Danny Mansergh, information officer at Mercer, mentioned that although Dublin’s price ranking has increased, this year’s cost of living is expected to stabilize. Mansergh stated that the costs for renting, accommodation, and purchasing goods for foreign nationals in Dublin are relatively lower in comparison to Western Europe, maintaining its attractiveness for expatriates during assignments.
In this year’s Mercer’s list of most expensive cities, Hong Kong remains on top, followed by Singapore, Zurich, Geneva, and Basel.
A report released by the Stepstone Group, the parent company of IrishJobs, revealed that due to infrastructure issues, including a housing crisis, Ireland’s attractiveness to foreign workers has slightly declined. Ireland dropped to the 36th position in the ranking, compared to the 40th position a year ago.
In an earlier survey conducted this year, half of the members of the American Chamber of Commerce in Ireland, including some of the country’s largest multinational employers, identified the housing crisis as the biggest obstacle to further investment in the country.