Ireland is the second most expensive country in Europe with only Danes expected to pay more for a range of goods and services, the latest figures from Eurostat have confirmed.

Prices here are much higher than the European average with things worsening over the last decade, the data suggests.

Back in 2015, costs here were 28 per cent above the European average. The new figures suggest that the gap has climbed to 38 per cent.

When it comes to alcohol and tobacco, prices here are the most expensive and 205 per cent of the average with a significant portion of the price differential due to higher rates of tax and the introduction of minimum unit pricing on alcohol.

Restaurant and hotel prices are the second highest in the EU, behind only Denmark and 29 per cent above average.

There are some areas when Ireland fares better, with clothes prices cheaper.

There are several reasons why prices here are so high. These include: our higher wages, a lack of competition in certain sectors, high taxation on certain goods such as tobacco, alcohol and fuel, and lower government subsidies in certain areas such as public transport and childcare compared to our European neighbours.

Irish businesses are also faced with high insurance and energy costs, which then get passed on to consumers.