The cost of living survey by consulting firm Mercer said Dublin had knocked Paris from the top spot for the eurozone’s priciest city.
Globally Hong Kong is the most expensive city for expats, Tokyo second, followed by Zurich, Singapore and Seoul.
The Mercer survey is used by multinational companies to calculate how expensive it is to base staff abroad and what they should expect to pay staff working in different cities. The survey ranks more than 200 cities and compares the prices of more than 200 goods and services including housing, transport, food, household goods and entertainment.
New York is used as the baseline and the US dollar used for all cost calculations.
Globally Dublin was ranked as the 32nd most expensive city up 34 places compared to last year as well as being the most expensive city in the eurozone. It had ranked below Paris for the two years before this latest survey.
Western European cities rose up the table because of the strength of the euro against the dollar with German cities showing some of the biggest increases in cost: Frankfurt and Berlin each rose by 49 spots each to 68 and 71 respectively.
Although the rising value of the euro against the dollar was part of the reason for Dublin’s rise in expensiveness the report singled out the cost of accommodation.
The national cost of renting rose by almost 12 per cent in the first three months of this year. In Dublin average rents rose by nearly 13 per cent to almost €1,900 a month – higher than in the Celtic Tiger years.
Senior consultant at Mercer Noel O’Connor said: “The survey identifies cost pressures on expatriate rental accommodation in Dublin as the key driver of this. This reflects the growth of the economy with continuing high levels of foreign direct investment.”