Irish households are braced for continued pressure on their grocery bills as the Economic and Social Research Institute projects inflation will persist above the 3% threshold next year, with food prices expected to rise further.
The Dublin-based research body has cautioned that consumer price pressures show little sign of easing in 2027, whilst also highlighting the fragility of the State’s tax revenue base in its latest economic assessment published this week.
Key facts
- Inflation is forecast to remain above 3% throughout 2027
- Food price increases are expected to continue affecting Irish consumers
- ESRI has identified vulnerabilities in Ireland’s tax revenue structure
- Warning issued by the Economic and Social Research Institute on 28 September 2026
Sustained Price Pressures on Household Budgets
The Economic and Social Research Institute has signalled that Irish consumers will face ongoing challenges with the cost of living, particularly in relation to food purchases. The research body’s analysis indicates that inflationary pressures, which have troubled households for the past several years, are unlikely to moderate significantly in the coming twelve months.
Food price inflation has been a persistent concern for Irish families, eroding purchasing power and forcing many to adjust their spending habits. The ESRI’s projection that overall inflation will maintain levels above 3% next year suggests these difficulties will extend well into 2027, placing continued strain on household budgets already stretched by years of elevated costs.
Tax Revenue Concerns Highlighted
Beyond the immediate consumer price concerns, the ESRI has drawn attention to structural weaknesses in Ireland’s taxation system. The institute has characterised the nation’s tax base as ‘fragile’, pointing to potential vulnerabilities in government revenue streams that fund essential public services.
Ireland’s tax revenue structure has long been a subject of economic debate, with the State’s reliance on corporation tax receipts from a relatively small number of multinational companies creating concentration risk. This fragility in the tax base carries implications for fiscal planning and the sustainability of public spending commitments, particularly if economic conditions shift or if international tax arrangements change further.
The dual warnings from the ESRI – covering both consumer inflation and tax revenue stability – underscore the complex economic challenges facing policymakers as they navigate an uncertain international environment whilst attempting to protect living standards and maintain fiscal discipline.
Reporting based on original coverage by the original source.
