Irish saving rate rises to almost 15% amid fall in spending

CSO findings show €1 in €7 is now being saved by Irish households 

The current savings rate is also notably above the average of 13.1% since the beginning of 2023. 

Irish households continue to add to their deposit accounts with new figures released today showing the household saving rate rise to almost 15%.

The Central Statistics Office (CSO) said that €1 in €7 is now being saved by households, which is being underpinned by rising income and a fall in consumption.

The saving rate for the three months between July and September was up by almost 2% compared to the previous quarter, when it was just over 13%.

The current savings rate is also notably above the average of 13.1% since the beginning of 2023. 

After adjustments for seasonal patterns, The CSO said Irish household consumption showed a marginal decrease of 0.2%, while income in the same period grew by 1.7%, leading to a higher savings rate. 

"Households saved 14.8%, or €1 in €7, of their disposable income in July, August, and September, which was above the 2023 and 2024 average," CSO statistician Mark Manto said. 

"Saving can add to a household's overall wealth in the form of buying new homes, growing bank deposits, pension savings, and paying off debt," he continued.

Speaking on the new figures, Teresa Bruen, Financial Planning Consultant at Gallagher said they reflect a "cautious approach to their finances" in the face of ongoing economic pressures.

"However, headline savings figures can hide the reality for thousands of families who are still struggling with rising everyday costs, from groceries and utilities to fuel and transport. Inflation on essentials is still a problem and, as we approach the festive season, these pressures are particularly keenly felt by those on tighter budgets," Ms Bruen added. 

It comes as new data, also released by the CSO found annual inflation rose to a 21-month high of 3.2% in November.

This is the highest annual rate of inflation since February 2024 when the rate was 3.4%.

"It is encouraging that many households continue to prioritise saving, even in a challenging environment," Ms Bruen noted.

"But the picture is mixed. A significant proportion of households hold only modest balances in low-interest accounts, which means inflation is steadily eroding the real value of their money. 

"Younger people and lower-income families are particularly vulnerable, with many lacking the financial buffer needed to cope with even small unexpected expenses."

Today's results are preliminary and are subject to revision, the CSO added.