Inflation hits 22-year high as households feel the strain

INFLATION in Ireland hit 7 percent in April, a high not seen in 22 years.

Soaring energy, food, airline ticket and fuel prices are pushing up the National Statistics Office’s inflation index.

Sharp price increases put a heavy strain on disposable income, as wage increases do not keep pace with the rate of inflation.

The CSO said diesel prices have risen 40 percent over the past year and gasoline prices have risen 24 percent.

Statisticians stated that diesel prices are €1.95 per liter and petrol €1.93 per liter.

This means that diesel prices have increased by 61.3ct per liter over the past year, with petrol prices increasing by 50.4ct per liter between March last year and March this year.

Airfare costs rose 93 per cent as air travel reopened after Covid restrictions.

As a result of the war in Ukraine, electricity costs rose by 29 percent last year and gas costs by 50.5 percent.

Heating oil costs have skyrocketed 90 percent, while solid fuels, which include wood, peat and coal, are 25 percent more expensive than a year ago.

Consumer prices rose 0.9 percent on the month in April.

CSO statistician Colin Cotter said the national median price for a large 800g white-sliced ​​pan rose 12.9 cents in the year to March.

The brown disc pan of the same size rose 22.2 cents over the year.

Fresh salmon per kg fell 12.1 cents for the year, while the average price for 2.5 kg of potatoes fell 9.9 cents.

The national average price for a 50cl can of lager to take away was €2.16, an average of 32 cents higher than in March last year.

A 70cl bottle of vodka to take away for €23.90 increased by €3.18.

In March of this year, the national average price for a pint of stout in taprooms was €5.08, while a pint of lager was €5.47.

Because pubs were closed for the March 2021 CPI collection period, year-on-year comparisons for the price of a pint are not available, the CSO said.

Meanwhile, planned monthly consumer spending in Ireland has fallen by 10 percent, according to Deloitte’s latest State of the Consumer Tracker.

The survey found that consumers in Ireland are more concerned about inflation than the global average.

More than half are worried about their savings.

Deloitte’s State of the Consumer Tracker is a monthly survey that tracks consumer attitudes towards personal well-being, financial concerns, travel and hospitality, transportation and retail.

The survey results clearly show that households are reducing their spending in response to the price crisis.

Daniel Murray, Partner and Head of Consumer at Deloitte Ireland, said: “Consumers in Ireland are significantly less optimistic about their finances than the global average, with significant increases in the cost of essentials inevitably leading to a decrease in planned discretionary spending leads.”

Of the 23 countries surveyed, Ireland is the third most concerned about inflation.

The average planned monthly consumer spending in Ireland has fallen by a substantial 10 per cent from €2,654 to €2,396. Inflation hits 22-year high as households feel the strain

Fry Electronics Team

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