Inflation in Ireland has shown signs of an uptick, with the latest figures from the Central Statistics Office (CSO) revealing a 1.4% rise in the cost of living for the 12 months leading up to December 2024. This marks a significant increase compared to the 0.7% recorded in September and October 2024.
While the current inflation rate represents a notable rise, it remains relatively low when compared to the sharp surge in 2022, when annual inflation hit 7.8%.
Key Drivers of Inflation
The most significant contributor to the latest inflation increase was a rise in transport costs. Petrol prices saw a 2.4% increase, while airfares surged by 4.3%. Taxi fares also experienced a sharp rise, climbing by 8.7%.
In addition to transport, leisure and hospitality costs have also seen noticeable increases. Package holidays grew by 7.2%, while the cost of admittance to sports events and participation in sports both rose by 6%. Prices in restaurants and hotels also climbed, increasing by 3.7%.
Declining Costs in Some Sectors
Despite the overall increase in inflation, certain sectors saw a decrease in prices. Clothing and footwear prices dropped by 8%, while costs in furnishing and household equipment fell by 1.3%. These declines provided some relief to consumers amid the rising costs elsewhere.
Economic Outlook
While inflation in Ireland is on the rise again, the 1.4% figure is still far from the peak levels witnessed in 2022, signaling that the country is not facing the same intense inflationary pressures as in previous years. However, the increases in transport and leisure costs highlight the ongoing strain on household budgets.
As inflation continues to evolve, experts will be watching closely to see if these upward trends persist in the coming months, or if they stabilize as part of a broader economic shift.