Cost of energy and food staples soar as inflation at highest level since 1984
17 4% Food, Is 20% Is 16%, Overall, By Up Poultry 25 Has Bread 6%, Almost Milk Risen And 8% Up Is 10 Up Up Butter Is
Inflation has hit its latest grim milestone, rising to its highest level since June 1984, largely driven by soaring energy costs. Households are also being hit by hefty food prices rises and rent increases.
The Consumer Price Index rose by 9.2% in the year to October, marking the 13th straight month that inflation stood above 5%.
It also reverses what had been something of a trend since July, where inflation had begun to fall from its summer peak of 9.1%, the Central Statistics Office said on Thursday.
Consumer prices rose by 9.2% over 12 months to October 2022https://t.co/D32eokbKE4#CSOIreland #Ireland #CPI #ConsumerPrices #Inflation #Deflation #Prices #BusinessStatistics #Business #BusinessNews #IrishBusiness pic.twitter.com/5o3j2P9dwI
— Central Statistics Office Ireland (@CSOIreland) November 10, 2022
The latest of many energy bill hikes which took effect in October has driven this latest inflation rise, with electricity rising by 28.1% and gas by 25.5% in the last month alone.
In the past 12 months, electricity has risen by over 70% while the cost of gas has almost doubled, rising by 93.3%.
A rise in housing costs is also hitting consumers, with private rents up 11.1% and mortgage interest up 14.9% in the last year.
The rising cost of food continues to hit households across the country, with double-digit percentage increases across many of the food items covered under the Consumer Price Index.
Food, overall, is up 10.8%. Bread is up 16%, poultry is up 17.6%, milk has risen by 25.4% and butter is up almost 20%.
Advocacy groups have repeatedly said that the worst-hit families by the cost-of-living crisis have been left reeling by the sharp rises across energy, housing and food and are often left with the choice of having to spend their money on either food or heating.
In terms of a breakdown for what is contributing to inflation, housing and energy represent almost half of the 9.2% rise.
The CSO also released its breakdown of national average prices on Thursday.
Statistician Anthony Dawson said: “The national average price of a number of items rose in October 2022.
“There were price increases for an 800g loaf of white sliced pan (+26c), two litres of full fat milk (+43c), and a pound of butter (+60c) when compared with October 2021.”
Spaghetti, meanwhile, was up 28c per 500g in the year while Irish cheddar rose by €1.28 per kg. Pork sausages have risen by over 60c per kg while a kilo of rashers is up around €1.25.
The average price of a pint, meanwhile, stood at €5.15 for stout (up 20c) and at €5.56 for lager (up 26c).
The latest inflation figures come as the Central Bank deputy governor said on Thursday that energy prices are likely to remain elevated in the near term, but there is optimism that this will not last over a longer term.
Sharon Donnery made the remarks at the 10th Annual NERI Dónal Nevin lecture on “Inflation and Labour Market Dynamics After the Pandemic”.
Ms Donnery cited a series of “overlapping shocks” that have hit the global economy such as Covid-19 and the war in Ukraine as contributing to the current inflation cycle.
“In the near-term, the energy crisis will continue to support higher price levels, whilst also being negative for growth,” she said.
But, Ms Donnery added, even without future shocks affecting inflation, “food price levels are unlikely to fall rapidly, or indeed soon”.
She said inflation has historically tended to move closely with wages but emphasised that wage pressures “are not the primary driver of the current bout of inflation”.
“But what we clearly want to avoid is a situation where, once the current supply shocks abate, domestic wage pressures are a factor contributing to inflation remaining above our target over the medium term,” she said.