Inflation Rising At Near 40-Year High As Cost of Living Crisis Squeezes Hard

Hands counting coins from a broken piggy bank.

Another major headache for the under pressure government ahead of the Dáil’s summer recess kicking in on Thursday with the news that inflation has hit its highest rate in 38 years.

Prices have risen by 9.1% in the past year, according to the CSO, the largest increase since 1984. Inflation stood at 7.8% in the last monthly report.

The heaviest increases (22.5%) were recorded in rents, mortgage interest, water, electricity, gas and other fuels.

Meanwhile, transport costs are up 20.4%, while restaurants and hotels are up 7%.

Alcohol and tobacco are up 8.2%.

Fuel has seen the biggest cost jumps with electricity (+40.9%) – gas (+57.2%) and – liquid fuels/home heating oil (+115.4%)!!

Figure 1: CPI/HICP - ALL ITEMS Annual Percentage Change

It comes as an Irish Times opinion poll shows a sharp drop in support for the Government, in particular Fine Gael and Fianna Fáil with Sinn Féin is at its highest ever support base.

CSO statistician Anthony Dawson is a specialist with the Prices Division and reflects the main drivers of change in inflation rates recently: Take a listen: