While Ireland’s inflation rate has eased to 1.7% in the year to May 2025, mirroring levels seen in May 2021, households across the country continue to grapple with the cumulative impact of price increases over the past four years. New data from the Central Statistics Office (CSO) reveals that consumer prices have risen by 20% since 2021, with food, energy, and housing among the most affected categories.
The figures highlight that although current inflation is relatively low, many essential goods and services are significantly more expensive than they were four years ago. Food prices, for instance, are up more than 25% overall, with some staples such as butter, whole milk, and olive oil rising by over 45%. Meat products have also surged, with beef up 43% and lamb 33%.
Even common household indulgences have not been spared. Chocolate is 41% more expensive, confectionery has increased by 28%, and crisps cost 26% more than they did in mid-2021. These hikes are attributed not only to global supply chain disruptions and increased input costs but also to so-called “shrinkflation” — where product sizes are reduced while prices remain unchanged — and “skimpflation,” where ingredients are downgraded to cut costs.
Energy costs have seen some of the most dramatic increases. Natural gas prices are up 95%, electricity by 52%, and liquid fuels by 37%, largely due to global energy volatility post-COVID and exacerbated by geopolitical events such as Russia’s invasion of Ukraine.
Housing costs have soared as well. Mortgage interest rates have risen by more than 77% since May 2021, while private rents are up 32%, further pressuring household budgets.
Weather-related disruptions and climate policy have also played a role in driving food prices higher. Droughts, floods, and environmental regulations affecting livestock numbers have contributed to increased costs for dairy, meat, and grain-based products such as pasta, which is now 29% more expensive than four years ago.
While average weekly earnings in Ireland have risen by 19.3% since early 2021, they have slightly lagged behind inflation. The impact varies across sectors: workers in tech and professional services saw wage growth above inflation, but those in education, the arts, and recreation have experienced earnings that failed to keep pace with rising living costs.
Despite the easing of headline inflation, many consumers continue to feel squeezed, with essential goods and services far more expensive than just a few years ago. For many Irish families, the cost of living crisis is far from over.
