Household staples have jumped in price over the last 12 months, according to Central Statistics Office data published Thursday, with a pound of butter now costing 55 cent more than in January last year and cheese, milk and potatoes also recording notable increases.
Overall, consumer prices continued to rise in January, with the annual rate of inflation reaching almost 2 per cent, up from 1.4 per cent at the end of 2024. When energy and unprocessed food are stripped out, inflation was 2.5 per cent over the year.
The restaurant and hotels sector as well as transport saw the most significant increases over the past year – both up 3.9 per cent, with CSO statistician Anthony Dawson saying “higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc.” had driven inflation in that sector.
But it wasn’t just eating out that was affecting people’s pockets. A kilo of cheddar now costs 35 cent more than at the start of last year on average across the State with two litres of milk costing 18 cent more while the price of a 2.5kg bag of potatoes has risen by 11 cent, the CSO said.
Bread, however, is cheaper with a brown sliced pan costing two cent less than this time last year and a penny of the price of a white sliced pan.
The annual inflation rate rose despite a 0.8 per cent fall in prices compared to December. That was because the monthly fall in January last year was an even more dramatic 1.3 per cent.
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On a monthly basis, prices for clothing and footwear fell 8.6 per cent while there was a 4.3 per cent cut in the cost of recreational and cultural activities.
Alcohol saw the biggest jump in prices over the month, up 3.1 per cent while health costs climbed 1.4 per cent.
Analysis said households were still under pressure, despite a fall-off in the headline rate of inflation.
“Although inflation may have decelerated, the reality remains that many households are grappling with the cost-of-living outpacing wage growth, making it even harder to manage day-to-day expenses,” said Karl Kelly, a private clients consultant at Aon’s NFP Ireland. “Amid this backdrop of global uncertainty and rising prices, many people are becoming more cautious with their spending.”
Discretionary spending was also under pressure.
“Today’s report shows that above-average inflation has been recorded for cinema tickets, sports admittance, restaurant meals and takeaway food, and hairdressing,” said Dominic Lumsden, Peopl Insurance.
“Let’s not forget too that while inflation has eased from the record highs of recent years, prices are still increasing – and from a much higher base,” he said.
The National Average Prices for selected goods and services for January 2025 are also published today. The National Average Prices are compiled together with the CPI.
