The upcoming Budget for 2025 will reflect the significant decrease in inflation rates over the past year, according to Paschal Donohoe, Minister for Public Expenditure and Reform. Speaking at a Fine Gael Small Business and Enterprise Conference in Athlone, Donohoe confirmed that there will be a cost of living package included in the Budget, set to be announced in the Dáil on Tuesday, October 1.
Donohoe noted that while inflation has declined, prices for many goods and services continue to rise. “Even though inflation is coming down, prices are still going up,” he stated. However, he emphasized the importance of adjusting the cost of living package to account for the fall in inflation from over 10% to approximately 2%.
The previous year’s cost of living package amounted to €2.3 billion, and while the total allocation for this year’s measures has not yet been finalized, discussions are ongoing within the Government.
Earlier this week, Tánaiste Micheál Martin highlighted that addressing the cost of living, housing, and health will be central priorities for the upcoming Budget. He reiterated that although inflation has eased, high prices remain a concern for consumers.
Recent data from the Central Statistics Office (CSO) revealed that inflation had decreased to 1.7% in August, down from 2.2% in July. This marks the first time since June 2021 that the annual inflation rate has fallen below 2%. In October 2022, inflation had soared to 9.2%, the highest level recorded since January 1984.
As the government prepares for the Budget announcement, officials are navigating the complex landscape of rising living costs against a backdrop of declining inflation, aiming to provide targeted support for those most affected.