Dublin is not an expensive city to live in, according to Dublin Chamber of Commerce.
The Chamber's claim follows a report published yesterday showing Dublin to be the third most expensive capital in the EU and a recent Forfás report showing Ireland to have the highest cost of living of any EU state. This is thought to be caused in part by profiteering on the part of some businesses since the euro changeover.
But Dublin Chamber of Commerce rejects the findings, saying: "[The findings] give a biased view of the real cost of living since there are numerous factors to take into account".
Yesterday's Mercer report says Dublin has fallen 12 places down the league of the world's most expensive cities but places only London and Copenhagen ahead of Dublin as the EU's most expensive capital cities.
The survey covers 144 cities measuring the cost of over 200 items such as housing, food, clothing and household goods, together with transport and entertainment. The survey compares figures for March 2002 with March 2001.
Last month's Forfás report said Ireland was the most expensive country in the eurozone for buying a basket of groceries which included both food and non-food items.
The Chamber, however, says high indirect tax rates, rising labour costs and a shortage of housing are to blame for the "seemingly high" cost of living in Dublin and say that high excises and duties on goods such as cars and alcohol make prices "artificially" high.
With these factors, and an acceptance that demand outstrips supply for commercial and living space in the capital leading to high rents, the Chamber still maintains Dublin is not an expensive city in comparison with its main competitors.
Director of policy at the Chamber, Mr Declan Martin, said the Mercer survey was flawed since it did not include the cost of education, which he said is "a significant part of any household budget".
He also described as "laughable" the Mercer finding that a cup of coffee in Paris is cheaper than in Dublin.