Monday 22 December 2014

Groceries in capital are among the most expensive in world

Emma Jane Hade

Published 28/07/2014 | 02:30

Consumers are paying almost double the amount as British shoppers for the same product, as our capital city has been ranked as one of the most expensive cities in the world for groceries.

A recent survey of the price of household groceries in seven different international cities found that Dublin ranked as one of the more expensive cities to shop in. The prices showed consumers were asked to pay significantly more than our European counterparts.

According to the survey, carried out by 'The Guardian', Dublin shoppers paid noticeably more for household utility products such as dishwasher tablets and toilet roll, as well as sugar, broccoli, granola, Coca Cola and wine.

The results of the study in Dublin and London were based upon Tesco prices, and some of the items which showed quite a startling price difference included eggs, as shoppers in Dublin were found to be paying 44pc more than those in London.

Other items which showed a drastic contrast in prices included onions, which were reported to be 51pc more expensive in Dublin, and broccoli which was 201pc pricier.

The British study challenged shoppers to purchase 43 different regular shopping list items, which included a variety of fresh fruit and vegetables, milk, bread, rice, meat and alcohol.

A spokesperson for Tesco Ireland said that labour costs and Irish government levies are factors which attribute to the higher costs. "In Ireland, labour costs, energy costs and government levies on certain products such as wine, are higher. And this will obviously be a factor in overall consumer prices for Tesco and other retailers," the spokesperson added.

Ireland ranked the third most expensive out of the seven countries, while London came in second. Berlin ranked first, while Paris and Sydney completed the top five.

New York in the US and Toronto in Canada, were deemed to be the two most expensive cities, coming in sixth and seventh place.

Some of the items which Ireland were deemed to offer the best value on were potatoes, sweetcorn and frozen peas. Irish minced beef was found to be over 50pc cheaper than the same amount in Toronto.

Meanwhile, consumers here are getting a "raw deal" by paying significantly more for technology products than US shoppers, a watchdog has reported.

UK consumer body 'Which?' compared the prices of a range of identical electronic products in Britain and the US and found that costs are significantly lower across the water.

A further probe by the Irish Independent found Irish shoppers are also paying more, as the prices of 12 products and digital goods, all of which can be purchased in Ireland online direct from the manufacturer, were examined. All 12 products were priced on both the Irish and the US presence of each manufacturer's online store.

After tax was excluded it became clear that Irish shoppers are paying significantly more for some gadgets than their American counterparts – with price differences running from under €10 to over €150

Currently goods over the value of €22 bought online from outside the EU are subject to Irish VAT charges. As an adult travelling outside of the EU however, you are allowed to bring home goods of up to €430 without incurring any taxes.

Responding to the 'Which?' survey, a Microsoft spokeswoman said: "Pricing varies by region and is dependent on a variety of specific factors including, but not limited to, exchange rate, local taxes, duties, local market conditions and retailer pricing decisions."

Irish Independent

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