Living crisis: New figures show who is hardest hit by inflation

THE inflation spike hits the elderly, those living alone and those renting from a local authority hardest.

And households on the lowest incomes are experiencing higher inflation, a Central Statistics Office (CSO) survey for June, which breaks down the impact of inflation, has found.

According to the study, rural households are also harder hit by price increases than households in cities.

The inflation rate in June was 9.1 percent.

However, some households experience annual consumer price increases of more than 10 percent, the CSO said.

The impact of price increases is not as severe for those in the highest income bracket.

Different types of households can absorb inflation in different ways.

Poorer households spend more of their total income on energy, while higher-income households may be more resilient to increases in energy costs.

The CSO said households paying mortgages estimated annual inflation at 8.4 percent.

For households that own their entire home, inflation has been estimated at 9.3 percent.

Tenants are suffering major losses in the current price spiral.

Households renting their home from a private owner had an estimated inflation rate of 9.4 percent.

But it’s almost 10 percent for those renting from a local authority.

And the price increases are 9.7 percent for rural households, compared to 8.8 percent for city dwellers.

Households where the household reference person is under the age of 35 had an estimated inflation of 8.8 percent.

A household in which the reference person is 65 years of age or older experienced an estimated 9.8 percent annual inflation last month.

Above-average inflation was calculated for households with one adult at 10.2 percent, one adult with children at 9.8 percent, or two adults without children at 9.2 percent.

CSO statistician Joseph Keating said that over the past year, lower-income households, those renting from a local authority, those renting privately and rural residents experienced higher inflation than others.

“Energy costs were a key driver of inflation over the 12 months to June 2022.”

He said transport-related price changes are responsible for almost a third of the 9.1% annual change in the consumer price index.

And increases in electricity, gas and heating oil contributed more than a quarter to the change in the headline inflation rate.

Next month more than a million households with Electric Ireland accounts will be hit by a fourth rise in electricity and gas prices in a year.

ESB’s own energy supplier pushed up electricity prices by 11 percent and gas prices by 29 percent in August.

It is Electric Ireland’s second price increase this year and fourth since last year.

The latest move will increase electricity costs by €164 per year for its 1.1 million customers.

The state-owned company’s electricity prices will have risen 67 percent cumulatively since the year the last hike went into effect.

And there are warnings of further energy price hikes after Russia tightened gas supplies to Germany and the eastern and central EU states again.

There are fears that Russia will completely cut off cash flows in retaliation for sanctions in the Ukraine war.

https://www.independent.ie/business/personal-finance/latest-news/cost-of-living-crisis-new-figures-reveal-who-is-hit-hardest-by-inflation-41871591.html Living crisis: New figures show who is hardest hit by inflation

Fry Electronics Team

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