Inflation rate for lower-income households reaches 10.3%

For households in the lowest 10% by income, electricity, gas and other fuels were the largest contributor to their estimated inflation rate making up 3.3% of the 10% rate.

Lower-income households faced inflation rates of 10.3% in June 2022, according to figures released but the Central Statistics Office (CSO).

In comparison, the highest-income households experienced an inflation rate of 8.2%.

This compares to the annual Consumer Price Index (CPI) inflation figure of 9.1% in June 2022 — the highest rate in 38 years.

Households in the 1st (lowest) income decile were estimated to have an inflation rate of 10% while households in the 2nd income decile had an inflation rate of 10.3%.

The breakdown of inflation rates by household characteristics from the CSO also revealed that the annual inflation rate was 8.8% for urban households and 9.7% for rural households.

The figures from the CSO also established the main contributing factors to inflation rates. For households in the lowest 10% by income, electricity, gas and other fuels were the largest contributor to their estimated inflation rate making up 3.3% of the 10% rate.

Meanwhile, for households in the top 10% by income, transport was the largest contributor to their estimated inflation. This made up 2.6% of the 8.2% inflation rate.

The statistics also revealed that households paying a mortgage had an estimated annual inflation rate of 8.4% while for households that own their home outright, inflation was estimated to be 9.3%. 

New Estimated Inflation rates to June 2022 show lower income households experienced inflation rates of up to 10.3% compared to 8.2% for highest income householdshttps://t.co/05cPRDa2QM #CSOIreland #Ireland #CPI #ConsumerPrices #Inflation #Deflation #Prices #IrishBusiness pic.twitter.com/uiKYzKYkZ1

— Central Statistics Office Ireland (@CSOIreland) July 27, 2022

For those renting, households that rent their home from a private owner had an average inflation rate of 9.4%. Meanwhile, there was a 9.9% inflation rate for those renting from a local authority.

The inflation rate also varied depending on the household ages. When the household reference person is aged under 35 estimated inflation was 8.8%. However, when the reference person is 65 or older annual inflation was estimated to be 9.8%.

Joseph Keating, Statistician in the Prices Division, CSO said: "The official measure of inflation as published in the CPI shows that prices for consumer goods and services increased by 9.1% in the year to June 2022.

"Over the same period, the estimated annual inflation by household income categories showed a range from 8.2% for the top decile of households by income, to 10.0% or more per annum for households in the two lowest income deciles.

"The cost of energy was one of the major drivers of inflation in the 12 months to June 2022," Mr Keating added.