In a concerning turn of events, Ireland has witnessed a swift rebound in inflation, with the Consumer Price Index surging to 6.4% in September, up from 6.3% in August, according to the Central Statistics Office (CSO). This unexpected rise has been attributed to several key factors.
Mortgage interest rates have climbed significantly, spiking by 6.3% in just one month and a staggering 49.5% in a year. Prices of clothing, shoes, and heating oil have also seen sharp increases, contributing to inflationary pressures.
Notably, the cost of living in Ireland has become increasingly burdensome, with food prices surging by 7.5%. While some items like meat, sugar, and vegetables continue to rise in price, the cost of milk and butter has witnessed a decline.
Furthermore, rents rose by 0.8% within a month and a substantial 7.1% year-on-year, impacting the housing market. Electricity and gas prices remain high despite promises of reduction from companies, with electricity costs up by 23.5% and gas by 38.7% compared to the previous year.
Interestingly, air travel seems to be an outlier, with air ticket prices decreasing by 25% in a month. Additionally, spending in sectors like pubs and hotels rose by 7.3% and 6.4%, respectively.
These startling numbers reflect an overall inflation rate 5% higher than the past two years, signifying the need for careful monitoring and potential policy adjustments to mitigate the impact on Irish households.