Dublin has moved up two places in the rankings of the most expensive locations for foreign workers here.

The Mercer 21st annual Cost of Living Survey sees our capital now placed at 49th position - sitting in between Peth and Washington DC.

Zurich has topped the list once again as the most costly city in Europe.

In the UK London ranks 12th, Birmingham 80th, Aberdeen 82nd, Glasgow 109th, and Belfast 127th.

While Dublin is ranked behind a number of other European cities, it is the only Eurozone city to move up the rankings this year.

Mercer says the main factor driving Dublin's position is the costs of expatriate rental accommodation.

"This reflects the growth of the economy and the continuing high levels of foreign direct investment," it says.

The survey also finds that factors including inflation for goods and services impact on the overall cost of doing business.

New York is used as the base city, and all cities are compared against it.

The survey includes 207 cities across five continents - and measures the comparative cost of more than 200 items in each location including housing, transportation, food, clothing, household goods, and entertainment.

Senior consultant at Mercer, Noel O'Connor, says the rise of Dublin is mostly to do with the cost of renting.