Irish consumers cut spending by 10 per cent as inflation hits

Irish consumers plan to cut monthly spending by 10 per cent as concerns mount over the rising cost of living.

According to a survey by consulting firm Deloitte, the average monthly planned spending of Irish households fell from €2,654 in March to €2,396 in April.

Consumer plans to spend on more important things like home and groceries are down 9 percent, while their intention to spend on less important things like restaurants and travel is down 11 percent.

Consumers’ spending intentions are dominated by more important items, accounting for 68 percent of their planned monthly spend.

More than a quarter of Irish people (26%) are concerned about upcoming payments, while 52% say they are delaying major purchases.

Deloitte’s monthly State of the Consumer Tracker also found that Irish consumers were more concerned about inflation than most, with 85pc worried daily prices would rise.

The number compares to a global average of 75 percent, 80 percent of UK respondents and 79 percent in the US.

However, 44 percent of Irish people are optimistic their financial situation will improve over the next three years, up 1 percent since last month, although 56 percent are worried about their savings.

“The results of the latest tracker show the far-reaching consequences of the devastating situation in Ukraine for many countries, including Ireland,” said Daniel Murray, Partner and Head of Consumer at Deloitte Ireland.

“Following the negative impact of Covid-19 restrictions, consumer confidence in Ireland is again facing significant headwinds, this time in the form of rising inflation leading to a notable rise in the cost of everyday items.

“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 reduction in planned discretionary spending.”

The news comes as rents rose 12 percent compared to this time last year, reaching a nationwide average monthly cost of €1,567, according to the latest report from Daft.ie.

Headline inflation reached 7.3 percent in April, according to the EU’s harmonized index of consumer prices.

Home builder Cairn Homes said today it expects construction costs to rise 6 percent this year.

Official forecasts say inflation will average over 6 percent this year, with the Economic and Social Research Institute predicting it could peak at 8.5 percent this summer.

The Deloitte survey results are based on a survey of over 20,000 consumers in 23 countries, including 1,000 Irish, conducted in late April.

https://www.independent.ie/business/irish/irish-consumers-to-cut-spending-by-10pc-as-inflation-bites-41642272.html Irish consumers cut spending by 10 per cent as inflation hits

Fry Electronics Team

Fry Electronics.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@fry-electronics.com. The content will be deleted within 24 hours.

Related Articles

Back to top button