The Irish economy saw inflation drop below 8% in March, giving hope that the current surge in prices may be nearing its peak.
According to the Consumer Price Index from the Central Statistics Office, prices rose 7.7%, year-on-year, in March. This rate of growth was a decrease from the 8.5% increase recorded in February.
Household costs were largely responsible for the increase, with mortgage interest rates rising by 35%, and electricity, gas and other fuel costs increasing by more than 32%.
Food prices also rose over the last 12 months, with whole milk, butter and bread all going up by between 15-24%.
Paul Walsh, CEO of Peopl Insurance, commented on the situation: “This is the 18th consecutive month of 5%+ annual CPI growth. Irish households are really feeling the strain of these rising costs. Many don’t have the financial cushioning to fall back on, facing annual grocery bills of over €1000 due to the soaring prices of staples. Practically everything on the supermarket shelves has increased in price, stretching households beyond their limits.”
