Food and alcohol prices push Irish inflation back up to almost 2% – The Irish Times

Inflation Bites: Household Essentials Cost more

The cost of everyday necessities continues to climb, putting a squeeze on household budgets. According to Central Statistics office data released in January 2025, inflation reached nearly 2%, driven by increases in food, energy, and transportation costs.

A pound of butter now costs 55 cents more than it did in January 2024, while the price of cheddar cheese has jumped by 35 cents per kilogram. Two liters of milk are 18 cents pricier,and a 2.5kg bag of potatoes has risen by 11 cents. “Higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc.” have contributed to a 3.9% increase in the restaurant and hotels sector.

Transportation Costs Climb

The transportation sector also saw a meaningful 3.9% increase over the past year.

Food Prices Persist as a Burden

While bread prices have slightly decreased, with a brown sliced pan costing 2 cents less and a white sliced pan 1 cent cheaper, the overall trend remains upward.”Even though inflation may have decelerated, the reality remains that many households are grappling with the cost-of-living outpacing wage growth, making it even harder to manage day-to-day expenses,” said Karl Kelly, a private clients consultant at Aon’s NFP Ireland. “Amid this backdrop of global uncertainty and rising prices, many people are becoming more cautious with thier spending.”

Discretionary spending Takes a Hit

the impact of inflation is also being felt in discretionary spending. “today’s report shows that above-average inflation has been recorded for cinema tickets, sports admittance, restaurant meals and takeaway food, and hairdressing,” said Dominic Lumsden, Peopl Insurance. “Let’s not forget too that while inflation has eased from the record highs of recent years, prices are still increasing – and from a much higher base,” he added.

The situation highlights the ongoing economic challenges faced by households, who are increasingly feeling the pinch of rising costs.

Looking Ahead:

As prices continue to rise, it is crucial for individuals and families to carefully monitor their spending and explore ways to save money.Consider creating a budget, seeking out deals and discounts, and reducing unnecessary expenses. It’s also critically important to stay informed about economic trends and government policies that may impact your finances.

How can households balance their budgets when they’re feeling the pinch across the board due to inflation?

Navigating Inflation’s Bite: A Conversation with Economic Analyst, dr. Emily Hart

Household Essentials Cost More: Understanding the Inflation Squeeze

Archyde: Dr. Hart, thank you for joining us today. Let’s dive right in. according to recent data, we’re seeing a meaningful increase in the cost of everyday necessities. Can you help our readers understand why this is happening?

Dr.Emily Hart: Thanks for having me. Indeed, inflation is biting harder into household budgets. This is primarily due to supply chain disruptions, increased demand for certain goods, and global economic factors like energy price volatility.

Archyde: We’ve seen prices of food items like butter, cheese, and milk rise substantially. Why is this happening now?

Dr. Hart: Global food inflation is driven by several factors, including higher fertilizer costs, extreme weather events, and increased demand for biofuels. Here at home, higher domestic retail prices also reflect increased input costs and logistics challenges.

Transportation Costs: Feeling the Pinch

Archyde: The transportation sector has also seen a marked increase. How are rising fuel and transport costs affecting households?

Dr. Hart: Rising fuel and transport costs have a ripple effect on households. They drive up the cost of goods and services, as businesses pass on increased logistics costs to consumers. Additionally, higher transport costs can lead to job losses or reduced working hours in the sector, further impacting household incomes.

Discretionary Spending in the Crosshairs

Archyde: Inflation is not just affecting essential goods; we’re seeing higher prices for discretionary items as well. How can households balance their budgets when they’re feeling the pinch across the board?

Dr. Hart: Households need to be savvy about their purchases, find ways to reduce spending on non-essentials, and make use of deals and discounts. It’s also a good time to review budgets,expenses,and explore ways to save. This could mean switching to generic brands, cooking at home, or canceling subscriptions that aren’t being used.

Looking Ahead: Should We Be Worried?

Archyde: With prices still increasing, should households be worried about the future?

dr. Hart: While it’s true that prices are still growing, recent data shows that the rate of inflation is slowing down.However, prices are still increasing – and from a much higher base. So, while we shouldn’t panic, we should remain vigilant and prepare for evolving economic conditions. Regularly reviewing and adjusting our budgets as needed will be key.

Archyde: Dr. Hart, thank you for sharing your insights and practical tips. your expertise has certainly put the current inflation trends into perspective for our readers.