The need for pay restoration for Irish workers has been highlighted again as new figures revealed consumer prices in Ireland were the fifth highest in the EU last year, at 118% of the EU average. The latest research from EU statistics body Eurostat, published this week, also showed that Ireland has the highest prices for alcoholic beverages and tobacco in the EU at 178% of the average.

The cost of food and non-alcoholic beverages is also above average here, at 117% of the EU average – but well below Denmark in top place at 140% of the average.

The cost of restaurants and hotels in Ireland was also well above the EU average at 128%. We also pay far more for consumer electronic and personal transport equipment at 105% and 111% of the EU average respectively.

Clothing was the sole area where Irish prices were below average.

Prices were highest in Denmark (140% of the EU28 average) followed by Sweden (130%), Luxembourg and Finland (both 123%) and lowest in Hungary (60%), Poland and Romania (both 57%) and Bulgaria (48%).

The figures demonstrate the continuing challenge to economic growth as domestic demand struggles to recover from the years of economic crisis. A recent paper launched by IMPACT, Living on Less: Changes in earnings, incomes and employment during the recession, found that average public sector weekly earnings decreased by 5.1%, while average public sector hourly earnings fell by 5.4% between 2008 and 2013 (these figures do not include the effect of the ‘pension levy’ on earnings). During the same period, average weekly private sector earnings fell by 3.4%, while average private sector hourly earnings were stagnant.

The combined effect of higher prices and static wages means that domestic demand, and the economic growth that depends upon it, will continue to struggle as the Irish economy struggles to recover from the economic crisis.