According to the Central Statistics Office, inflation has witnessed a surge of 1.5% over the past year up to June, with a further 0.3% increase observed since May. This contrasts to the 2% inflation recorded in Ireland in the year up to May and a significant 6% yearly rise in the EU Harmonised Index of Consumer Prices (HICP) for the euro region over the same timeline.
The breakdown of the preliminary HICP for Ireland in June reveals that energy costs are projected to have gone down by 1% for the month and have sunk by 5.6% over the past year. On the other hand, food costs are projected to have dropped by a small margin of 0.1% in the preceding month but have escalated by 2% over the past year.
Meanwhile, the HICP, excluding energy and unprocessed food, is anticipated to have elevated by 2.3% since June of 2023.
Paul Walsh, the spokesperson for Peopl Insurance, has made it clear that despite these statistics many costs continue to increase and living in Ireland remains costly, with the truth being that a recent Eurostat report placed Ireland as the second most expensive European country. The report highlighted that prices for basic goods and services in Ireland were a shocking 42% above the average in EU countries.
Walsh noted that this meant pricing continues to pose a struggle for many Irish households, and with the implementation of the carbon tax hikes in May and the government’s prospective plan to reinstate the full excise duty on petrol and diesel come August, pressures are bound to compound.
Moreover, Walsh pointed out that numerous sectors are experiencing over average inflation rates, such as hairdressing, home and motor insurance, air travel, leisure and culture, restaurant services, as well as petrol and diesel.
According to Walsh, the lingering effects of recent record-breaking inflation will undoubtedly continue to be felt by Irish households for a while yet. He stressed the importance for the Irish population to strive towards enhancing their household finances, advising that attaining the best value for money has never been more crucial. With costs for many goods and services continuing to be high, yet retailers and providers still vying for trade, consumers need to take full advantage of this competition to their benefit.
As Walsh put it, “Doing your homework and comparing prices can effectively lower expenditures and boost your savings.”