Dublin slips in costs survey

Dublin is the 18th most expensive city in the world, and a more expensive place to buy a cup of coffee than both London and Paris, according to the annual Mercer Worldwide Cost of Living survey.

The city has slipped five places down the rankings since last year and is now considered slightly less expensive to live in than Singapore and slightly more expensive than Sydney. It is the 11th most expensive city in Europe.

The cost of a cup of coffee, including service, was found to be €3.01 in Dublin, compared to €2.77 in London and €2.20 in Paris.

Moscow replaced Tokyo as the world's most expensive city to live in. Its elevation in the rankings was attributed to a recent property boom, which has pushed up accommodation costs.

Seoul climbed three places to second place, with Tokyo falling to third, and Hong Kong and London making up the rest of the top five. Asuncion in Paraguay remained the cheapest city.

Brian Duncan, head of Mercer's human capital practice in Ireland, said Dublin had not become cheaper to live in since last year; other cities had simply become more expensive, particularly for accommodation.

"Executive" rents in the Irish capital were lower than in many major cities. The monthly cost of renting a luxury two-bedroom unfurnished apartment was found to be just over €1,200 in Dublin, compared to €3,400 in Tokyo, €2,500 in London, €2,200 in Beijing and €1,900 in Paris.

"The cost of day-to-day living in Dublin might be higher than in some European cities, but good quality accommodation isn't as expensive," Mr Duncan said.

Mercer conducts the survey to help multinational companies and governments calculate the cost of employing people in different locations.

Most eastern European cities have dropped sharply in the rankings, while many US cities rose due to the strength of the dollar.

London, the second most expensive city in Europe, fell two places in the world rankings due to the strengthening of the dollar against the pound. Prices in the British capital have actually increased since last year.

The other European cities found to be more expensive than Dublin were Geneva, Copenhagen, Zurich, Oslo, St Petersburg, Milan, Istanbul and Paris.

Mercer's survey covers 144 cities and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.