| 19.2°C Dublin

Cost of living crisis: New figures reveal who is hit hardest by inflation


Prices are rising fast for a range of goods including food.

Prices are rising fast for a range of goods including food.

Prices are rising fast for a range of goods including food.

THE inflationary spike is hitting older people, those who live on their own and people who rent from a local authority hardest.

And households with the lowest incomes are experiencing higher inflation, research from the Central Statistics Office (CSO) for June, that breaks down the impact of inflation, has found.

Rural households are also being hit harder by price surges than those in towns and cities, the research found.

The June inflation rate was 9.1pc.

But some households are experiencing annual consumer price rises of more than 10pc, the CSO said.

Price rise impacts are not as steep for those in the highest income category.

Various types of households can absorb inflation in different ways.

Poorer households spend more of their overall income on energy, while higher-income households may be able to absorb more easily the hikes in energy costs.

The CSO said households paying a mortgage had estimated annual inflation of 8.4pc.

For households that own their home outright, inflation was estimated to be 9.3pc.

Renters are taking big hits in the current spiralling prices environment.

Households that rent their home from a private owner had an estimated inflation rate of 9.4pc.

But it is close to 10pc for those renting from a local authority.

And price rises are 9.7pc for rural households, compared with 8.8pc for urban dwellers.

Business Newsletter

Read the leading stories from the world of business.

This field is required

Households where the household reference person is aged under 35 had estimated inflation of 8.8pc.

A home where the reference person is aged 65 or over saw annual inflation estimated to be 9.8pc last month.

Higher than average inflation was calculated for households of one adult at 10.2pc, one adult with children at 9.8pc), or two adults without children at 9.2pc.

CSO statistician Joseph Keating said over the last year lower income households, those that rent from a local authority, those that rent privately and rural dwellers were experiencing higher inflation than others.

“The cost of energy was one of the major drivers of inflation in the 12 months to June 2022.”

He said transport-related price changes were responsible for almost a third of the 9.1% annual change in the consumer price index.

And hikes in electricity, gas and home-heating oil contributed more than another quarter of the change in the overall inflation rate.

Next month more than a million households with Electric Ireland accounts are to be hit by a fourth rise in electricity and gas prices in a year.

The ESB-owned energy supplier is pushing up electricity prices by 11pc in August, and gas prices by 29pc.

It is the second Electric Ireland price hike this year, and the fourth since last year.

The latest move will add €164 a year to the cost of electricity for its 1.1 million customers.

Electricity prices at the State-owned company will have gone up by 67pc cumulatively since year when the latest hike takes effect.

And there are warnings for more energy price rises to come after Russia again tightened the supply of gas to Germany and eastern and central EU states.

There are fears Russia will completely cut off flows in retaliation for sanctions over the Ukraine war.

Most Watched