According to the Central Statistics Office, (CSO) lower-income households in June saw inflation rates of up to 10.3% compared to highest income households’ 8.2%.
The CSO has published an update to its first research paper on inflation broken down by various household characteristics up to June 2022.
Commenting on the research report, Joseph Keating, Statistician in the Prices Division, said: “The increasing rate of inflation since the middle of 2021 has prompted greater interest in price change and its effects on households. The Consumer Price Index (CPI) is a measure of average inflation for all households.”
He said: “The report presents estimates of inflation classified by household income, composition of the household, housing tenure, age of the household reference person, and whether the household is in an urban or rural setting.”
The research shows that for households in the lowest decile, Electricity, Gas and Other Fuels was the largest contributor to their estimated inflation rate. This was followed by Rent and Transport.
Households paying a mortgage had an estimated annual inflation of 8.4 per cent, while for households that own their home outright, inflation was estimated to be 9.3 per cent.
Households that rent their home from a private owner had an estimated inflation rate of 9.4 per cent, versus 9.9 per cent for those renting from a local authority.
Compared with the June 2022 CPI figure of 9.1 per cent, the annual inflation rate was 8.8 per cent for urban households and 9.7 per cent for rural households.
Annual inflation was predicted to be 9.8% in households with a reference person under the age of 65 and 8.8% in households with a reference person over the age of 35.
For families with one adult (10.2%), one adult with children (9.8%), or two adults without children, higher inflation rates were calculated (9.2 percent).