Rising Costs in Ireland Put Pressure on Households Amid Government Hesitation on Relief Measures
Dublin: Households across Ireland are grappling with soaring prices, as the cost of essential goods, healthcare, transportation, and alcohol continues to rise. Many families are struggling to keep up with living expenses that have outpaced wage increases, placing significant financial strain on individuals and communities.
Financial experts highlight the mounting pressure on household budgets. Karl Kelly, a private client consultant at NFB Ireland, pointed to the sharp rise in food and housing costs as key contributors to financial distress. Dominic Lumsden from People Insurance noted that while inflation has slowed, prices continue to climb, affecting purchasing power and overall affordability.
Government Intervention Urged Amidst Inflation Concerns
Inflation spiked following the COVID-19 pandemic, with oil and gas prices surging in 2022. The situation worsened after Russia’s invasion of Ukraine, driving energy costs well beyond the European Central Bank’s 2% target. Rising living costs became a dominant issue in Ireland’s November general election.
Despite these challenges, Prime Minister Micheál Martin has indicated that the government has no plans to extend energy credits or introduce a new cost-of-living relief package in the upcoming budget, citing the declining inflation rate.
Key Inflation Figures and Price Increases
According to the Central Statistics Office (CSO):
- Inflation rose to 1.9% in January, up from 1.4% in December.
- Prices excluding energy and unprocessed food increased by 2.5%.
- Food Prices:
- A pound of butter increased by 55 cents.
- Irish cheddar rose by 85 cents per kilo.
- Two litres of full-fat milk increased by 8 cents.
- A 2.5-kg bag of potatoes is now 11 cents more expensive.
- Alcohol and tobacco prices increased by 4.6%.
- Healthcare costs surged by 14%.
- Restaurant and hotel prices rose by 3.9%, as did transport costs.
Meanwhile, some sectors experienced price declines:
- Clothing and footwear prices dropped by 6.5%.
- Furniture and household appliances saw a 0.8% decrease.
- Brown sliced bread is 2 cents cheaper, and white sliced bread has dropped by 1 cent compared to January 2024.
Uncertainty Over Future Relief Measures
The government previously introduced energy credits in the October budget, providing a €250 discount on electricity bills for all domestic consumers in two installments. Similar measures had been implemented in prior budgets. However, Prime Minister Martin has signalled that these relief efforts may not continue due to the easing inflation rate.
Concerns are also growing that other financial supports, including child benefits, could be at risk of being discontinued.
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