Ireland’s annual inflation rate eased to 1.7% in May, down from 2.2% in April, according to the latest figures from the Central Statistics Office (CSO). The monthly rate was flat, while the Harmonised Index of Consumer Prices (HICP) — which excludes mortgage interest costs — fell to 1.4% from 2%.
Despite the overall slowdown, several core living expenses continued to climb, putting pressure on household budgets. Food and non-alcoholic beverages saw a 4% annual rise, with prices increasing across staples like meat, chocolate, milk, cheese, and eggs. Alcohol and tobacco prices also rose by 3.1% compared to May 2023.
Housing costs remain a concern, with rents up 5.3% year-on-year. Electricity prices rose by 1.3%, while insurance premiums jumped sharply — health insurance up 8.7% and motor insurance by 8.5%.
On a more positive note, transport costs declined by 2.4% annually, largely driven by lower prices for airfares, petrol, and diesel. Clothing and footwear were also cheaper, falling by 1.9%.
The CSO also released national average prices for selected items, highlighting significant price increases in basic groceries. A pound of butter now costs €1.03 more than last year, while Irish cheddar cheese is up 57 cent per kilogram. Two litres of full-fat milk rose by 27 cent, and white or brown sliced pan by 5 cent. Spaghetti saw a modest 2 cent increase. Conversely, the price of a 2.5kg bag of potatoes dropped by 25 cent.
Commenting on the figures, Dominic Lumsden of Peopl Insurance warned that while headline inflation has eased, many essentials are rising faster than the average. “Postal services, hygiene products, and taxi fares have all jumped significantly, with taxi fares up 8.7%,” he noted.
Grocery inflation continues to bite, with butter up 18%, beef and veal up 19.9%, and low-fat milk rising 13.7%.
For families planning to holiday at home this summer, higher costs for leisure and hospitality may impact their budgets. Cinema trips are up 5.6%, restaurant and takeaway prices by 3.3%, and recreational services by 6.3%.
Mr. Lumsden also pointed to the impact of May’s carbon tax hike, which is expected to drive up the cost of home heating oil, gas, coal, and briquettes. “While the effects may not be fully felt until the colder months, the pressure on household heating costs is mounting,” he warned.
The figures come as households continue to navigate a challenging cost-of-living environment, even as inflation moderates at a national level.
