Living costs soar 38% above EU average, Eurostat says
Ireland is now the second most expensive country in Europe, just behind Denmark, according to the latest data from Eurostat. Prices across a wide range of goods and services are 38% above the European Union average, widening from 28% in 2015.
The figures confirm Ireland’s growing cost burden, particularly for essentials like alcohol, food and energy. While wages in Ireland are relatively high, they often fail to keep pace with the country’s elevated cost of living, experts warn.
Alcohol, food and energy drive inflation gap
Alcohol and tobacco prices in Ireland are the highest in the EU, coming in at 205% of the EU average. This spike is largely attributed to high excise duties and the government’s minimum unit pricing policy on alcohol. Food and non-alcoholic beverages rank third most expensive in the EU, at nearly 15% above average, with Luxembourg and Denmark taking the top two spots.
Energy costs are also weighing on consumers. Electricity, gas and fuel prices in Ireland are over 17% above the EU mean, placing the country as the third most expensive in this category.
Hospitality and telecoms also notably costly
Prices in restaurants and hotels are the second highest in Europe, standing at 29% above the EU average. Meanwhile, communication services such as mobile and internet are nearly 40% above the European norm, underscoring Ireland’s persistent issues with competition and affordability in key service sectors.
Some sectors show slight relief. Clothing prices are 1% below average, making Ireland cheaper than Lithuania, Latvia and Poland for apparel. Still, this is a rare exception.
Calls grow for policy reform to ease burden
Daragh Cassidy of bonkers.ie highlighted several contributing factors, including high wages, limited competition, elevated VAT (currently at 23%) and reduced public subsidies in areas like transport and childcare. He also criticized Ireland’s “compo culture” for driving up insurance premiums, which are passed onto consumers.
“Ireland will never be a cheap place to live,” Cassidy noted, “but measures can be taken to reduce pressure on consumers.” He urged the government to reassess tax policy and expand subsidies to align Ireland more closely with other high-cost nations like Switzerland and Denmark, which offer stronger public services in return.
