Property & Mortgages

Tuesday 29 July 2014

Property tax blamed as cost of living increases again

Aideen Sheehan

Published 11/07/2014|02:30

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The gradual pick-up in consumer confidence was due to the fact that householders feel the recovery is taking hold
The gradual pick-up in consumer confidence was due to the fact that householders feel the recovery is taking hold

THE property tax and higher insurance costs have helped push up the cost of living for consumers.

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New figures from the Central Statistics Office (CSO) show prices rose 0.1pc in June and are up 0.4pc in the last year.

The main factors contributing to the rise were an 8.8pc hike in health insurance costs and a 6.8pc rise in motor insurance premiums as well as increased costs associated with the local property tax.

Restaurant and hotel costs, meanwhile, rose 2.2pc in the last year while alcohol and cigarette prices are up 4.1pc and education costs are up 4.5pc mainly due to higher third level charges.

Transport costs rose as petrol prices nudged up again while airfares rose by almost 30pc last month.

But the weekly shop got a little cheaper with a 2.4pc fall in prices for food and beverages, mainly down to falling potato, dairy, fruit and vegetable prices, while clothing and footwear prices fell 3.4pc.

The cost of prescription drugs is also down 9.2pc after the introduction of reference pricing and other government measures to encourage use of cheaper generic medicine.

Communications costs have fallen as the cost of buying and using phones dropped by 4.7pc.

The inflation figures show that price pressures remain weak, although inflation would be higher here if you took out the impact of European Central Bank interest rate cuts on mortgages, said David McNamara of Davy stockbrokers.

Irish Independent

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