Ireland is the fifth most expensive state in the EU, according to a new report from the Central Statistics Office.

According to the report, only Denmark, Finland, Sweden and Luxembourg are more expensive places to live within the EU, with Irish prices 15 per cent above the EU average.

The report, Measuring Ireland’s Progress 2012, said this was a “considerable improvement” on the 2008 figure, when Irish prices were the second highest in the EU, at 30 per cent above the EU average.

It said Ireland was the only country in the EU to experience a decrease in inflation between 2008 and 2012 but prices here still remain high by EU standards

As well as being the fifth most expensive state, Ireland also has the fifth highest unemployment rate according to the report.

However, the productivity of the Irish workforce in 2012, measured by GDP per person employed, was 43 per cent higher than the EU average.

The report also showed that Ireland has the highest fertility rate and the second lowest divorce rate in the EU.