Saturday 26 May 2018

Higher rent and car insurance push consumer prices up - CSO

Stock photo
Stock photo

Charlie Weston, Personal Finance Editor

THE cost of rent and motor insurance continue to rise, putting pressure on low-paid workers.

New figures from the Central Statistics Office show most prices fell in March, but there continues to be huge hikes in the cost of insuring car and renting a home.

Overall consumer prices were down marginally, by 0.3pc, in the year to March, the CSO said.

But the cost of insuring a car has jumped by 32.6pc.

This means that a policy that cost €500 last year now costs €663.

Motor insurance costs have been rising because of under-pricing by insurers, new rules requiring more reserves to be put aside by firms, elevated personal injuries awards and lower investment returns.

These costs are being passed on to motorists, with some drivers being asked to pay 50pc more for cover.

There was a big surge in rents. People in private rental accommodation saw the cost rise by 9.2pc in the year to March, the CSO said.

Rents are rising as there is a chronic shortage of properties, and despite moves by the Government to bring in rules imposing a two-year freeze on rent rises.

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