Irish consumer sentiment improves but many feel the pinch of rising prices — survey 

Forty per cent of Irish respondents plan on boarding an international flight in the next three months, an increase of 3% compared to this time last year

Shoppers continue to purchase premium meats despite high prices.

Irish consumer sentiment has improved amid the cost-of-living crisis, but a new survey shows many are still feeling the pinch of rising prices.

Deloitte’s latest Global State of the Consumer Tracker found 40% of Irish respondents plan on boarding an international flight in the next three months, an increase of 3% compared to this time last year, as demand among holidaymakers ramps up after years of pandemic restrictions.

More than half also said they expected to stay in a hotel in the next quarter.

“We are seeing some interesting demand increases which will require continued and careful contingency planning to avoid potential issues,” said Daniel Murray, partner and head of consumer at Deloitte Ireland.

Some consumers are also moving away from own brand goods and shoppers continue to purchase premium meats despite high prices.

“This may suggest that Irish consumers are once again focusing on the food quality when selecting their meats in particular. Having said that, only 23% have bought several nice-to-have items, which shows caution remains when it comes to their purchases,” said Mr Murray.

The majority of Irish respondents are concerned the prices of everyday purchases will go up, which is down 2% on last month, but remains highest of all the countries surveyed in the report.

Most of these consumers expect prices to rise in restaurants, and 78% expect to see further rises in household utilities. The number who expect fuel to rise increased to 68%.

While many Irish people anticipate prices will continue to climb, about 36% of consumers are concerned they will not be able to afford a large, unexpected expense in the next three months, but this is 9% lower than last month.

Financial situation worsened

Other findings include that 60% of Irish shoppers have no extra money left at the end of the month and about 50% feel their financial situation has worsened over the past year.

“However, a quarter of respondents said they expect their situation to improve in the next 12 months,” Deloitte said.

The annual pace of Irish inflation eased to 7.7% in January as energy price pressures relaxed due to a mild winter.

This rate has fallen significantly below the annual inflation rate of 9.2% in the euro area, which was recorded in December.

Updated inflation figures from the Central Statistics Office are expected to be released tomorrow.

The survey, by professional services firm Deloitte, benchmarks the sentiments driving consumer behaviours in Ireland and 24 other markets around the globe.

The overall report includes responses from 20,000 consumers to get insights on overall financial wellbeing in different countries.

“Those countries that were least concerned were China, Saudi Arabia, Brazil and India,” said Mr Murray.