Competitiveness regained? How prices in Ireland compare to the rest of the eurozone

Eurostat’s publication of prices of food and drink across Europe has highlighted again how expensive Ireland is relative to its neighbours. This post examines prices across Eurozone members since 2001 and finds that the damage was done in Ireland by 2003 – and that much has been reversed in the last two years. It’s unlikely, though, that Ireland will rank below third in price league tables any time soon.

Deflationary food for thought

A quick look at prices across the different sectors in Ireland reveals a far more interesting pattern than the typical assumption of slowly rising prices would suggest. Clothing and communications prices are at levels similar to those in the 1980s, while ‘deflationary episodes’ are becoming more common in Ireland every decade.

Typical change in prices, by sector, 1990-2009

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