Fri Sep 20 13:36:23 UTC 2024: ## Cost of Living Crisis Still Bites Despite Inflation Slowdown: Irish Households Feeling the Pinch
While inflation has slowed down, with the rate reaching a three-year low of 1.7%, the cost of living crisis continues to put a strain on Irish households. Despite the recent easing of price hikes, many families are still significantly poorer than they were three years ago.
The most significant impact is felt in housing costs. While interest rates are falling, they remain higher than in 2021, with tracker mortgage holders facing a typical monthly payment €400 higher than last year. Renters are also struggling, with average rent increases reaching 8.1% for new tenancies and 5.9% for existing ones over the past year, leaving many over €200 worse off.
Food costs are another major concern. Although grocery inflation has slowed to 2.8%, prices are still significantly higher than three years ago. This means that a family spending €200 a week on groceries in 2021 could be paying €230 now, adding up to an extra €1,560 annually.
Energy costs have also risen, even though they are down from their peak last year. The average annual cost of domestic gas and electricity is now €3,200, compared to €2,000 in 2021, leaving households €1,200 poorer.
Health insurance premiums have also increased, with most households paying about €500 more per year, adding further pressure to household budgets.
The combined effect of these price hikes is substantial, with some households finding themselves €8,000 poorer annually after taxes. While recent budgets have included tax cuts and one-off measures, and some have experienced wage increases, much remains to be done to address the ongoing cost-of-living crisis and help families regain their previous spending power.
First Piper 