Deloitte: Irish consumers worry about inflation but plan to spend on holidays

Seven in 10 people will spend money on holidays in the next month at home or abroad, survey finds

Irish people are worried about inflation and interest rate hikes but are nonetheless spending on holidays this summer. 

Many Irish households plan to spend on travelling at home and abroad amid signs that people will spend on leisure, despite the fallout for utility bill and grocery food prices from the war in Ukraine, according to a leading survey.

Deloitte's Consumer Tracker also found Irish people were among the top three most worried of 23 countries about the effects on their everyday lives from inflation and looming hikes in interest rates, but were nonetheless spending on holidays this summer. 

“We are beginning to see somewhat of a levelling off or plateauing around financial concerns as people reluctantly accept that the conflict in Ukraine is not about to end any time soon, and prices are likely to continue climbing for fuel and staples like bread and pasta," said Daniel Murray, who is head of consumer at Deloitte Ireland. 

The average spend has increased by €267 to €2,663 in the past month, over a quarter in the survey were worried about making a future payment, but 41% of people said their finances were likely to improve in the next three years, Deloitte said. 

However, seven in 10 people will spend money on holidays in the next month at home or abroad. 

The Deloitte tracker is the latest survey to suggest Irish households may be affected in different ways by the squeeze from inflation.                      

The Irish consumer price index is running at 7.8%, which is close to the average rate across the eurozone, and is likely to rise slightly higher again by late summer, according to economists.    

Many more consumers have perceived higher prices in the past month.