Lower-income households experiencing greater inflation

Households with lower incomes, those in rural areas, and those headed by people over 65 continue to experience higher inflation rates.

This is largely due to the fact that these households spend a larger percentage of their income on transportation, fuel, and utility costs.

Prices have increased most dramatically in these areas.

According to the Central Statistics Office’s most recent publication, Estimated Inflation by Household Characteristics, the inflation rate for households with the lowest incomes in September was 9.5%.

On the other side, households with the highest incomes saw inflation of 7.5%.

Inflation as measured by the consumer price index for the month of September was 8.2% annually.

The CSO also published this analysis in March and June.

Renters experienced an inflation rate of 8.3%, whereas local government tenants experienced a 9.1% inflation rate.

Urban households faced inflation of 8.1% while rural households faced 8.7%.

Households headed by people aged under 35 and between 35-64 faced inflation of 8%.

Households headed by over-65’s faced inflation of 9%.

Joseph Keating, Statistician in the Prices Division, said “each household has its own unique consumption pattern of goods and services and therefore its own personal experience of inflation”.

The CSO noted that over the previous year, fuel prices—including gas, electricity, and other types—have accounted for more than a quarter of the rate of inflation.

Compared to the highest income households, which accounted for just over 21% of inflation, the lowest income households contributed just over one-third.

Rent was the main cause of inflation for people who rented privately, accounting for 36% of inflation, ahead of utilities and fuels at 21%.

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