Prices for consumer goods and services in Ireland have increased by 1.6 per cent in the past year, the latest inflation data from the Central Statistics Office (CSO) shows.
The biggest increase in Ireland was in food prices, which are estimated to have risen by 4.3 per cent in the past year, and by 0.3 per cent since May.
The data, which falls under the European Union (EU) Harmonised Index of Consumer Prices for Ireland, covers the month of June.
Prices have risen by 0.5 per cent since May, while the annual inflation rate of 1.6 per cent shows an increase on May’s annual figure of 1.4 per cent.
Despite the increase, June’s figure is lower that the euro zone’s rate of 1.9 per cent over the same period.
Dominic Lumsden, spokesman for Peopl Insurance, noted that food inflation is now running at almost three times the general rate of inflation.
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“This has unfortunately been a consistent trend in recent months and means consumers are struggling to afford even the basics, such as butter and milk, where double-digit price increases have frequently been recorded,” he said.
“This all comes against the backdrop of the ongoing uncertainty around tariffs, which could see prices skyrocket across Ireland and the EU from July – unless a trade deal is struck soon.”
The CSO data shows energy prices have fallen by 1.8 per cent in the year to June and by 0.2 per cent in the month, but Mr Lumsden said more pain is on the way for consumers.
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“Carbon tax increases which kicked in at the start of May will start to hit consumers’ pockets in a few months,” he said.
“These will push up the cost of home heating oil, coal, briquettes and gas for consumers, making it more expensive for them to heat their homes.
“While it will arguably be the colder autumn and winter months before homeowners feel the real brunt of these increases, the carbon tax hike will undoubtedly put more under pressure.”
Stripping out energy and unprocessed food, the overall rate of inflation is estimated to have gone up by 1.9 per cent since June last year.
Elsewhere, transport costs fell by 2 per cent in the year to June, but increased by 1.2 per cent compared to May.
“Unfortunately, consumers are still feeling the impact of the record-high inflation of recent years and this will continue for some time,” said Mr Lumsden.
“The Government has indicated that there will be no special cost-of-living package or energy credits in the upcoming October budget. If this is to be the case, it is imperative that it introduces other measures to tackle Ireland’s high living costs head-on.”
