Ireland 'second dearest' in EU

Ireland ranked as the second most expensive country in the European Union last year, according to a new Eurostat survey.

Irish prices are the dearest for alcohol and tobacco and among the highest for other common items, the study found.

The survey of consumer price levels measures a range of goods under a number of categories including food, alcohol and tobacco, clothing, consumer electronics, personal transport equipment, and restaurants and hotels.

It reveals that Ireland was ranked above the EU average in five out of the six categories.

Price levels for consumer prices and goods differed widely across Member States last year

In 2008, Denmark was 41 per cent was more expensive than the EU average, followed by Ireland at 27 per cent and Finland at 25 per cent.

Bulgaria was found to be the country with the lowest prices in the EU27, followed by Romania, Lithuania and Poland

Ireland was 84 per cent above the EU average for alcohol and tobacco, mainly due to higher taxes.

In addition, the country was second only to Denmark in terms of terms of food and personal transport equipment such as cars fuel prices and spare parts.

Ireland was also ranked the second most expensive country in the European Union for hotels and restaurants.

On the plus side, Ireland scored well in terms of the cost of consumer electronics and clothing.

The lowest prices for consumer electronics were recorded in Britain.

Consumer prices have fallen sharply since the beginning of the year with the annual rate of inflation dropping 5.4 per cent, according to the Central Statistics Office (CSO). Meanwhile, the cost of living, as measured by the consumer price index (CPI), declined by a further 0.3 per cent last month. The annualised fall is the biggest since May 1933.