Dublin has climbed seven places and is now the 14th most expensive city in the world, according to a survey published today by consultancy firm Mercer.
Dublin also comes in as the fourth most expensive city in the European Union.
London has climbed from seventh to second place in this year's ranking of cost of living while Tokyo kept its number one spot as the world's most expensive city Moscow was third followed by Osaka in Japan and Hong Kong, the survey found.
Using New York as a base city with a nominal score of 100, Dublin scored 96.9, Tokyo scored 130.7, London 119 and Asuncion in Paraguay just 36.5 - the least expensive of the 144 cities to feature in the survey.
Other high scoring cities apart from Dublin include Zurich ranked 9th, Milan ranked 13th, Oslo in 15th place and Paris in 17th position (94.8).
"There have been some dramatic movements in the rankings this year which are largely due to currency fluctuations," said Ms Marie-Laurence Sepede, senior researcher at Mercer. "Since the Euro was introduced in 2002, many European cities have moved up in the rankings."
Three of the five cheapest European cities are in countries that gained EU accession in May. Bucharest in Romania is the least expensive European city, ranked 129.
The survey measures the comparative cost of 200 items in each city, including housing, food, clothing, entertainment and transport.
