Inflation hits households hard in Ireland With the cost of goods

Inflation hits households hard in Ireland With the cost of goods, most people believe it will remain high. Food prices are rising at double-digit rates in most places.

Most consumers expect inflation to remain high, although they expect inflation to moderate slightly in the coming months. They are well aware that the opening of school and new clothes, shoes, bags and other household expenses will go up. However, the government will provide free books to primary school children under the textbook scheme. 

The impact of inflation is hitting households hard, with Ireland's inflation rate falling to 4.8 per cent in the 12 months to June 2023, having risen by just 0.8 per cent in the previous month. Inflation was at a brutal 9.6 percent in June 2022 on the back of soaring energy prices following Russia's invasion of Ukraine.

Energy costs and mortgage rate increases were seen as the biggest drivers of inflation, according to a July credit union consumer sentiment index. A credit union consumer index suggests most Irish consumers think inflation will be around 5% next year.

Consumers believe energy costs will be the biggest driver of future inflation. But older consumers, women and those struggling to make ends meet are more pessimistic. They expect inflation to be higher than other groups.

The latest figures from the European statistics agency Eurostat show that inflation in the country has halved in the past year.