Ireland's cost of living has been in decline in recent years due to the recession triggered by the global credit crunch and a substantial local property market collapse. For example, this is from 2009:

"Biggest drop in cost of living since 1933" http://www.irishexaminer.com/ireland/biggest-drop-in-cost-of...

And between 2009 and now, our economy has been flat at best. I think it's important to look at all of these factors when examining a country's economy. The real problem Ireland has is unemployment: we went from ~4% to ~14% unemployment in just a few years. This has added to the decline in the cost of living however (less demand for goods and services).