Ireland has the highest prices in Europe after Denmark, a survey of 29 countries reveals.
Irish prices are the dearest in Europe for communications, and second dearest in five other categories of spending, according to figures published in a Eurostat report, Consumers in Europe. In 11 of the 13 categories surveyed, Irish prices ranked in the top five. The figures relate to 2005.
The only area where Ireland was cheaper than the EU average was clothing and footwear, where prices were 94 per cent of the mean across Europe.
Irish consumers pay an extra 23 per cent for their goods and services compared to the average person in the EU, the survey reveals. British shoppers, by contrast, pay just 4 per cent above the average.
We pay 42 per cent more than the EU average for housing, water, electricity, gas and other fuels, 27 per cent more for restaurants and hotels, 25 per cent more for education and 24 per cent more for health.
The Consumers Association of Ireland said the survey showed there was a lack of real competition between Irish retailers and service providers. "This won't come as a shock to people who have been paying more for their goods for years," said the association's chief executive Dermot Jewell. "In our experience, the gap in prices between Ireland and the rest of Europe has remained stubbornly high, in spite of all initiatives, promises and even threats."
Mr Jewell said there was a "remarkable uniformity" in prices in sectors such as food retailing and telecommunications with all the main players watching each other closely. With inflation in Ireland running higher than in most of our neighbours, the price gap can only increase, he said.
The lowest prices are found in eastern European countries such as Bulgaria, where prices are 43 per cent of the EU average, and where wages are also far lower.
One possible reason for Ireland's high prices is identified in another table in the report, which shows that the standard VAT rate here, at 21 per cent, is one of the highest in Europe. Only the Scandinavian countries have higher VAT rates of up to 25 per cent while in Germany the rate is 16 per cent and in the UK, 17.5 per cent.
The cost of renting a fixed phone line from Eircom was €20.26 a month in 2005, higher than any other European country apart from Hungary and Poland, the report says. However, four out of five Irish phone subscribers considered the service affordable.
Dublin airport is ranked 16th largest in Europe measured by passengers carried, according to the report. Over 17 million people used the airport in 2004, compared to 67 million using London Heathrow and 51 million using Paris Charles de Gaulle. Two-thirds of Irish consumers were satisfied with the airlines they had used and satisfaction ratings for energy and transport companies were similarly high.
Just 15 per cent of Irish consumers say their rights are adequately protected in relation to financial services and only 25 per cent believe the confidential information they give to banks and insurance companies is adequately protected. One-third of Irish people believe financial transactions are generally secure and six out of 10 say having a bank account is expensive.
Irish households are among the largest in Europe, with an average of three people in each unit.
