Prices here are 42pc higher than the average for the EU, just pipping Denmark which is the most expensive, according to figures from the EU’s statistical agency Eurostat.
Prices in Denmark are 43pc higher than the average for the bloc, meaning that it and Ireland are pretty similar when it comes to the high cost of living in both countries.
Consumer experts said the high cost of living of living in this country was “staggering”, blaming high taxes and weak regulatory enforcement for the elevated prices paid by consumers.
The gap in pricing between this country and the average for the EU is widening.
Today’s News in 90 seconds – 21st June 2024
In 2016, prices here were 29pc above EU average but the gap has increased every year since.
Prices in Ireland are now well above traditionally expensive countries like Sweden and Norway.
Housing costs, such as rents, mortgage rates, gas and electricity, are the most expensive in the EU, at over double the average.
Alcohol and tobacco prices here are the most expensive in the EU, at more than double the average for the rest of Europe.
Eurostat said the large price variation in alcohol and tobacco was mainly driven by taxation.
Ireland has some of the highest rates of tax on alcohol and cigarettes in the world.
The survey, which assessed price differentials across more than 2,000 consumer goods and services for last year, found Irish people are paying more on a whole range of goods and services.
Price levels in restaurants and hotels were 28pc above the EU average.
Irish consumers also paid on average 18pc more for energy last year.
And transport costs are 15pc more expensive in this country.
Irish restaurant and hotel prices are the third most expensive in the EU, at 28pc above average, behind only Denmark and Finland.
Food prices in this country, which has a huge agricultural sector, are 13pc higher than the average. Eurostat said food and non-alcoholic drink prices here are the fourth most expensive in the EU.
Prices for recreation and culture are the sixth highest in the EU, meaning that people going to the cinema, a museum or a concert pay 16pc above average.
Communications cost in Ireland are the fourth most expensive in the EU at 42pc above average.
However, clothing costs in Ireland are 4pc below the EU average, making Ireland one of the cheapest countries in the EU average.
And our footwear prices are just 5pc above the average.
Daragh Cassidy of price comparison site Bonkers.ie said no-one is under the illusion that Ireland is a cheap place to live.
“However, the scale of the price difference between Ireland and our neighbours is still pretty shocking. We’re now even more expensive than Norway,” he said.
He said wages in Ireland are also above the EU average, but they are not 40pc above the EU average for most people.
“At 23pc, our standard rate of VAT is among the highest in the world. While we have some of the highest rates of excise on alcohol in the world too.
Mr Cassidy said the regulatory body that is in place to protect consumers, the Competition and Consumer Protection Commission (CCPC), energy regulator, the CRU, and the telecoms regulator, ComReg, “need to do better jobs and stand up for consumers more”.
If they need more powers to enforce laws and bring prices down, they should demand them, he said.