'People are down to the bare essentials' - Govt urged to soften blow of rising inflation

The rising cost of living dominated proceedings in the Dáil today (Wednesday March 23) as Sinn Féin urged the Government to soften the blow of rising inflation. 

A study by the Economic and Social Research Institute (ESRI), published this morning, said inflation could hit 6.7% this year.

That would be the highest rate in Ireland in several decades and would worsen the cost-of-living challenge facing Irish consumers.

Sinn Féin leader Mary Lou McDonald told the Déil: “Our airwaves are now filled with people sharing their stories about how incredibly difficult it is just to make ends meet. 

“People can barely afford to light and heat their homes.

“The price of groceries is going through the roof. Families now, in real terms, are stretched to put food on the table.

“People are down to the bare essentials and they do not have much left at the end of the week.”

Citing the ESRI study, she said forecasted economic growth gives the Government room to act.

“The Government has elbow room in the public finances to intervene and cushion people from the sharpest impact of the crisis,” she told Minister for Public Expenditure Michael McGrath.

“We have to make sure that people on low and fixed incomes have enough to live on.”

She criticised recent comments by Finance Minister Paschal Donohoe, who suggested the Government would not intervene again until October’s Budget. 

“Do you agree with Minister Donohoe’s position? Because October is seven months away, minister, and people are trying to stay afloat now.” 

Mr McGrath, who took leaders’ questions, told the Dáil that people understand inflation is now a “global phenomenon”.

“All developed economies in the world are now experiencing high inflation.

“These are unprecedented times and the level of inflation we are witnessing and that people are having to deal with in their day-to-day lives is without parallel in recent, modern history.

“The Government is not standing idly by.”

He pointed to recent Government interventions such as a cut to excise duty on fuel.

“The Government has made, in my view, a genuine and concerted effort to tackle this issue.”