Avoid Dublin - and save Money!

Ireland as a whole has always been an expensive country to live in, and it still is. Prices here are on average at least twice as high as in most other EU countries, and often even higher. There is also a clear difference between Dublin and the rest of the island.

Ireland's Central Statistics Office (CSO) has just published its regular comparison of prices in Dublin with the costs for certain goods and services outside the capital. The report shows that many prices are "generally higher" in Dublin, while the prices of most services are listed as "significantly higher" in Dublin.

In May the CSO looked at 79 specific items. Average prices were higher in Dublin for 51 of these and lower for 27, while the price of only one item was the same in the capital than anywhere else. Prices of 34 items were more than 3% higher in Dublin than elsewhere.

On average, prices were 4.4% higher in Dublin than in the rest of Ireland, little changed from the 4.5% gap in the last survey, which was done in November 2008.

The biggest price gap was found in the barber and hairdressing business. A wash, cut and blow dry for a man is on average 47% more expensive in Dublin than elsewhere in the country, while the same service for a woman costs 23% more. A dry haircut for a man is 18.8% dearer in the capital.
These are staggering differences and show how much our capital is still dominated by greed. As I had only one haircut in Dublin in all my life - and that was almost 20 years ago - my experience in that field is well out date. But from my regular visits to the capital I can only confirm that the prices for almost everything are much higher than they are - for example - in Cork, Kilkenny or here in Waterford.

Prices of meat, fruit and vegetables are higher in Dublin, but fish prices are generally comparable with the rest of the country.
The average price of an uncooked chicken is an amazing 27.3% higher in Dublin, while back rashers are 24% and pork steaks 23.8% more expensive.
There follows a long list of food items that are dearer in Dublin, from which I will mention only a few: Cod fillets (+ 11.2%), eggs (+ 10.1%), tinned tomatoes (+ 8.2%), lamb chops (+ 8.1%), pork chops (+ 6.9%), mushrooms (+ 6.4%), onions (+ 6.4%), jam (+ 6.3%), 10 kg of potatoes (+ 6.0%), marmalade (+ 5.8%), broccoli (+ 5.6%), salmon (+ 4.8%), fresh tomatoes (+ 2.8%) - and so it goes on.

The situation in the drink sector is not better: Orange juice (+ 14.9%), draught lager (+ 12%), draught cider (+ 10.9%), draught ale (+ 10.1%), bottled lager (+ 9.9%), draught stout (+ 9.1%), bottled cider (+ 8.5%), vodka (+ 7.1%), whiskey (+ 5.7%) and wine (+ 5.1%).

Bread prices, however, were around 8% more expensive outside Dublin, which is most likely a result of the structure of our food industry. While in most European countries bread is usually baked locally in many independent bakeries, Ireland has very few independent local bakeries. Most of the bread consumed in this country is produced industrially in large factories, and most of them are situated in Dublin. Thus the supply route for bread is the shortest in Dublin, and the extra 8% bread costs outside the capital are likely created by the expenses caused by transport and distribution.

Prices of hotel accommodation and entertainment services such as cinema and theatres are 'significantly higher' in Dublin than elsewhere.

Petrol prices were 2.1% higher in Dublin, while Diesel was 1.7% more expensive.

The overall verdict is that - despite recession - Dublin is not just the capital of Ireland, but still the rip-off capital of Europe. So my advice is simple: Avoid Dublin as much as possible - and thus safe a lot of money.

The Emerald Islander

CSO reports the lowest Inflation Rate in Years, but there is little Evidence in the Shops yet

The annual rate of inflation in Ireland has eased sharply in November, falling to 2.5% from 4% in October. This is the largest reduction since monthly records began.

According to the Central Statistics Office (CSO) in Dublin, the overall cost of living fell by almost 1% during November alone.
Lower mortgage repayments, as well as petrol and diesel price cuts were the main reasons for the reduction. However, there are no signs of food prices coming down. They are still as high as they were last month, and in some cases one can even see further rises, even though not as much as they rose throughout the first half of the year. (see also my entry of February 28th)

2.5% is the lowest inflation rate Ireland had for three years, and many economic indicators suggest that further reductions are likely in the months ahead.

The key factors behind the reduction are global, including a sharp interest rate reduction by the European Central Bank (ECB) in October, as well as rapid cuts in international oil prices due to mounting evidence that the global economy has entered recession.

Today's figures show average mortgage repayments fell by 8.4% in November, as banks began to pass on to borrowers the first of three interest rate reductions. Rents also fell by 6.1% during the month.

There was also a sharp reduction in the cost of home heating oil, which was down by more than 10% in November.
Since I heat my little house with peat and wood, that does not help me. The price for fire wood rose by 20% this year, and peat went up 12.5%. (This came on top of similar rises in 2007.)

Petrol prices were down 7.3% and diesel by almost 10%, as international oil price speculation rapidly unwound. Nevertheless people in Ireland still pay a lot more at petrol stations than anyone else in Europe. Only a few days ago Fine Gael's deputy leader and Finance spokesman Richard Bruton stated that petrol is 24% more expensive in Ireland, while diesel costs 18% more than in the other 26 EU countries. (see my entry of December 3rd)

With further interest rate and oil price cuts still to be passed on to consumers, all the signs suggest that inflation will ease further in the months ahead. There is also likely to be significant downward pressure on inflation coming from the strength of the Euro, which hit another record high of 88.8 pence against the British Pound Sterling today. This would be the equivalent of the old Irish Punt being worth almost £ 1.13, its highest value ever.

At least the currency value proves that adopting the Euro was a good and sensible decision, even though there were plenty of critics and grumblers during the first few years. But that has eased now.

Overall, today's figures are a little bit of good news from the CSO, which has delivered only bad news to us for most of the year.
However, for people like me, who don't have a mortgage and don't drive a car, the fall in inflation is only another number. I watch very closely the prices in the shops, and there have been no reductions at all. The whole of 2008 has seen an ever further rice in prices for even the most basic food and consumer goods. It will be interesting to see if the apparent fall of the inflation rate will reach the shops before Christmas. I somehow doubt it, with the exception that probably pork and products made with pork will be offered at reduced prices as soon as they are back on the shelves.

But that will have nothing to do with inflation. It will be an attempt to make good for the losses shops as well as producers made due to the recent contamination scandal and the subsequent food scare.
Being a vegetarian, this will not do me any good either. So, as much as I welcome the CSO's news of falling inflation, I have not seen or experienced any of its benefits yet.

The Emerald Islander

The Irish are ripped off at the Petrol Pumps

A new day, and another new Irish scandal - as I have predicted it last week.

According to Ireland's largest opposition party Fine Gael (FG), Irish people are paying significantly more for petrol and diesel than anyone else in the rest of the EU.

The party says that Irish motorists have to spend every month on average € 30 million more that they should, and it is not because of higher taxes.

In recent weeks the costs of petrol and diesel have dropped significantly, due to a drastic fall of the price for crude oil. But Fine Gael says that the prices Irish drivers have to pay at the petrol stations are not going down enough, as oil companies and petrol stations decide not to pass on the full benefit of price reductions and pocket the money themselves instead.

The party has been comparing the prices people in Ireland are paying to everyone else in the EU.

Fine Gael's deputy leader and Finance spokesman Richard Bruton (photo) explains that petrol is 24% more expensive in Ireland, while diesel costs 18% more than in the other 26 EU countries.

Once again we are ripped off in a shameless and criminal way by big businesses - in this case the oil and petrol companies - and no-one seems to be able to do anything about it.

The government does not care, as its members are driven around in their luxurious ministerial cars by Gardai and have not even a clue what Irish people pay on the petrol pumps.
And the National Consumer Agency - a toothless paper tiger established by Bertie Ahern to give his ex-girlfriend Celia Larkin a cosy little job - shows no interest in the matter either.

What - I wonder - will Irish people have to do before the complacent and lazy louts in government begin to take any notice of us, our needs and our misery?

Might some demonstrations do the job? Or will it have to be a revolution after all...?

The Emerald Islander