UK drops two places in Europe's living standard table

Prices in the UK rose from 2% above the EU average in 2010 to 3% in 2011. Credit: Owen Humphreys/PA Wire

The standard of living in the UK was the sixth best in Europe last year, with the country now also trailing Germany and Austria.

The UK was already behind Luxembourg, Norway and Switzerland, but fell two places in the 2011 list after higher prices hit households - judged by Bank of England governor Sir Mervyn King last year to be the harshest squeeze since the 1930s.

The drop came as prices in the UK rose to 3% above the EU average in 2011.

The measure by the Office for National Statistics and Eurostat takes in all goods and services that a household consumes and includes benefits in kind like health and education.