Cost of living in Ireland hits highest level in almost 30 years

Inflation has hit its highest level since 1984, latest figures reveal. 

According to the Central Statistics Office (CSO) prices on average, as measured by the Consumer Price Index (CPI), were 9.2% higher in October 2022 when compared with October 2021.

The most notable changes in the year were increases in Housing, Water, Electricity, Gas & Other Fuels (+27.8%), Food & Non-Alcoholic Beverages (+10.6%), Transport (+9.0%) and Alcoholic Beverages & Tobacco (+8.7%). There were decreases in Education (-6.6%) and Miscellaneous Goods & Services (-0.1%).

This is the thirteenth straight month where the annual increase for the CPI has been at least 5.0%.

Commenting on annual changes shown in the release, Anthony Dawson, Statistician in the Prices Division said: “The latest publication for the Consumer Price Index (CPI) shows that prices for consumer goods and services in October 2022 increased by 9.2% on average compared with October 2021. This is the highest rate of inflation since June 1984 when inflation was 9.7% and follows an increase of 8.2% in the year to September 2022.

"Prices have been rising on an annual basis since April 2021, with annual inflation of 5.0% or more recorded in each month since October 2021.

"Consumer prices in October increased by 1.6% in the month. During October of last year, prices rose by 0.7% in the month. The most significant monthly price changes were increases in Housing, Water, Electricity, Gas & Other Fuels (+8.7%) and Food & Non-Alcoholic Beverages (+1.1%). Housing, Water, Electricity, Gas & Other Fuels rose mainly due to an increase in the cost of electricity, gas, solid fuels, liquid fuels (home heating oil), mortgage interest repayments and private rents.

"There was a decrease in Education (-6.0%) in the month from September 2022, mainly due to a reduction in costs associated with participating in third level education," Mr Dawson said.

The main factors contributing to the annual change were as follows:

Housing, Water, Electricity, Gas & Other Fuels rose mainly due to an increase in the cost of electricity, gas, liquid fuels (home heating oil), solid fuels, higher rents and mortgage interest repayments.

Transport increased primarily due to a rise in prices for motor cars, diesel, petrol and services in respect of personal transport equipment. This increase was partially offset by lower prices for passenger transport by bus & coach and by railway.

Food & Non-Alcoholic Beverages rose due to higher prices across a range of products such as meat, bread & cereals, milk, cheese & eggs and vegetables.

Restaurants and Hotels increased mainly due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc. and an increase in the cost of hotel accommodation.

Education decreased primarily due to a reduction in costs associated with participating in third level education.

Miscellaneous Goods & Services fell mainly due to a reduction in prices for motor insurance premiums, health insurance premiums and jewellery, clocks & watches. This decrease was partially offset by an increase in prices for articles & products for personal care, hairdressing salons & personal grooming establishments and house insurance premiums.