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Economist calls for Small Budget as inflation hits 21-year high

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There has been a call for a Small Budget after fuel, petrol and food prices continued to rise.

According to data from the Central Statistics Office (CSO), the number of races increased by 5.6 points in February compared with the same month a year ago.

This is the largest annual increase in the consumer price index in nearly 21 years.

Prices rose by nearly 1pc from January to February, putting heavy pressure on household budgets.

Diesel prices increased by 32.5pc in February compared to the same month a year ago, of which gasoline increased by 30.3pc. Engine fuel costs have rebounded a number of times since.

Diesel was at €1.60/liter and gasoline at €1.70/liter when the CSO survey was conducted.

The CSO said airfares were 42.3pc lower in February than in the same month a year ago.

The cost of electricity was up 22.4 percent, gas was up 27.8 percent last month from a year earlier, and home heating oil was up a big 54 percent for the year.

Statistician Colin Cotter said the biggest monthly gains were in clothing and footwear, up 6.6 percent. This reflects the year-on-year effect of the rebound from January sales.

Traffic prices in the month increased by 2.3 points due to increased prices of airfares, cars, diesel and gasoline compared to January this year.

The national average price for bread (large 800g white slices) was 12.1c higher in January from a year ago, while brown sliced ​​pans of the same size rose 17.3c on the year.

Bananas/kg increased 10.2c for the year.

The average price for 2.5kg of potatoes decreased by 22.9c. Spaghetti per 500g was up 9.9c for the year in January.

The national average price of a 50cl can of beer to take home at €2.17 has increased by an average of 29.7c compared to January of last year, while a can of 50cl of dark beer for €2.35 has increased by 10 ,1 C.

In January 2022, the national average price of a liter of stout at licensed establishments was €4.95 while a pint of beer was €5.33.

As licensed facilities were closed during the survey period in January 2021 due to Covid-19 restrictions, annual comparisons of the price of a pint were not available, the CSO said.

And there has been a warning that inflation will be even higher in the coming months.

KBC Bank economist Austin Hughes says inflation will be higher in March and possibly even higher in April despite the Government paying €200 to households to deal with electricity bills. higher.

He said the spillover effect of runaway energy costs would have a larger impact on the prices of food, transportation and other goods and services.

“The winter of discontent will be followed by a spring of prolonged prices,” Mr. Hughes said.

Economists say a Small Budget is needed to increase social welfare, further cut the State’s intake of gasoline and diesel, and link income tax credits to inflation.

AIB chief economist Oliver Mangan said high prices would continue this year and possibly next.

“We could see an 8pc or 9pc inflation rate long before that. You would have been pushed out of the room in a white coat if you had predicted it a few years ago. “

Meanwhile, Nexflix will increase the monthly price by more than 15pc.

Its basic plan goes from €7.99 a month to €8.99. The premium plan will be from €17.99 monthly to €20.99 per month.

https://www.independent.ie/business/personal-finance/economist-calls-for-mini-budget-as-inflation-hits-a-21-year-high-41431411.html Economist calls for Small Budget as inflation hits 21-year high

Fry Electronics Team

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