Consumers still optimistic despite rising cost of living

Irish people remain optimistic about their financial futures despite the rising cost of living, according to the latest consumer sentiment index from the ESRI and IIB Bank.

The two organisations say consumer sentiment improved in December, despite concerns about the effect of rising interest rates.

IIB spokesman Austin Hughes says the rise appears to be a response to the Government's generous budget, but increasing interest rates are making consumers more cautious about their spending plans.