Higher wages and taxation are contributing to the surge in living costs in Ireland, according to a leading economist.
Ireland has one of the highest living costs in Europe, with consumers paying up to 40 percent more for some good and services than EU counterparts.
The country's VAT rate's also among the highest in Europe.
Professor Edgar Morgenroth from the DCU Business School, says energy costs aren't the only thing contributing to high price levels:
"If you compare Ireland with Spain, for example, you would say that on average the wages here would be higher. If you think of shop workers, for example, they would get higher pay and that would then reflect itself in the price of the goods you buy in that shop. The other, of course, is taxation. For example, Value Added Tax (VAT) is higher in Ireland than in many other EU countries and that immediately adds the price of things in Ireland compared to elsewhere."
