Dubliners pay more for goods and services than consumers in the rest of the country and the gap is widening, writes Marc Coleman, Economics Editor

Much of the difference is due to the higher cost of alcohol in pubs, the latest survey by the Central Statistics Office (CSO)shows.

The Labour Party said higher prices in the capital made it more difficult to recruit staff.

An average basket of goods in Dublin costs 3.5 per cent more than outside the city as of last month, compared to 3.1 per cent last November.

But when the cost of drinking out is excluded, the cost differential fell to 0.3 per cent.

A pint of stout cost €3.85 in the capital on average, compared to €3.54 in the rest of the country, the survey found.

Overall the costs of drinking out - including beer and spirits - was 8.8 per cent higher in the capital.

Although higher for other goods, the differential for drinking out has a higher impact on the cost of living because of the high share of incomes spent on alcohol in Ireland.

Early this month a European Commission study, Alcohol in Europe, revealed that the Irish spend on an average €1,675 per year on alcohol - three times more than citizens of any other EU country - and that the EU is the heaviest-drinking region in the world.

The highest positive difference was recorded for cinema tickets, which are 19 per cent more expensive in the capital.

The cost of a lady's wash, cut and dry came a close second, being 17.6 more expensive than the capital.

Otherwise, the cost of pork, fish and alcohol products dominated the list of items that were dearer in the capital.

But for a range of products, prices charged in Dublin were significantly lower.

Spaghetti was 17.5 per cent cheaper in Dublin than elsewhere and flour, bread and dairy products were also at last 5 per cent cheaper.

Petrol prices were slightly lower in Dublin

"Even allowing for higher property prices and some other costs, it is difficult to understand why so many products are consistently higher in Dublin than elsewhere," Labour senator Derek McDowell said yesterday.

"For instance, why meat prices should be so much higher in Dublin or why a pint should cost almost 30c more than in the rest of the country," he added.

"What is of even more concern is that this survey shows a widening gap between prices in Dublin and elsewhere," he said.

The survey also found that there was less variability in Dublin prices. In the capital the five highest prices quoted were on average 79.5 per cent higher than the corresponding five lowest prices. The equivalent gap outside Dublin was 115.3 per cent.

The CSO's price analysis of Dublin and outside Dublin is produced bi-annually, using prices of 73 goods and services collected for the Consumer Price Index.