Londoners face paying up to 15 per cent more than the national average for everyday items, according to official figures.
The sharp differences in costs across the UK have been laid bare in new analysis – showing that Northern Ireland is the cheapest place to live.
Overall prices across categories including food and drink, transport, clothing, and hotels were 7 per cent above the rest of the country – with wages and overheads for business said to be responsible.
Londoners face paying up to 15 per cent more than the national average for everyday items, according to the ONS analysis. In this chart 100 represents the national average
Recreational activities were 14.8 per cent more expensive than usual in London, and restaurants and hotels 13 per cent.
By contrast, Northern Ireland was 2.3 per cent cheaper across the board – and for some things it was 6.6 per cent less costly.
The Office for National Statistics (ONS) studied a basket of common goods and services – but not rent and mortgage costs – to compare prices in different parts of the UK.
Wages are significantly higher than London, but the figures show much of the benefit for workers is offset by higher prices.
The ONS found there was relatively little variation in prices for food and non-alcoholic beverages across the regions.
The highest costs were in London at 2.2 per cent above average. And the lowest was in the rest of England, at 2.4 per cent below.
Clothing and footwear was cheapest in Wales at 2.3 per cent below average, while in the capital it was 3.5 per cent above.
The ONS said such costs were often dictated by large retailers, who tended to keep them even across the country.
But categories relating to service industries such as restaurants and hotels showed big differences in 2016 – the most recent figures available.
The ONS said: ‘This reflects the variance in labour expenses in the regions, which make up a large proportion of the total costs in the services industry and also the variability in the cost of renting or leasing outlets across the regions.
‘Durable goods such as furniture and household goods are also demonstrating high price dispersion.’
Northern Ireland was 2.3 per cent cheaper across the board – and for some things it was 6.6 per cent less costly. The national average in the chart is 100