Inflation worse for under 35s and renters, says CSO

Those over 65 years experience 0.5% less inflation compared to those under 35 years

The CSO attributed the cost of fuel and energy, followed by rent and transport costs, as the main drivers of inflation for lower-income households in the 12 months to September 2026. File picture

People under 35 years old are experiencing inflation at a higher rate compared to people aged over 65 years old, according to a new analysis by the Central Statistics Office.

The annual Consumer Price Index (CPI) rate of inflation for September was calculated at 4.1%. This is a measure of average inflation for all private households in Ireland in the preceding 12 months.

The CSO further broke down the rate of inflation by household type using data from the 2022 to 2023 household budget survey, finding that higher-income households on average experienced a lower rate of inflation of 4.0%, while lower-income households experienced an estimated inflation of 4.2%.

The highest rates of inflation were estimated amongst households headed by a person aged under 35 years, at 4.4%. The figure was to 4.1% for households with people aged 35 to 64 and 3.9% for those aged 65 or over.

Inflation rates amongst younger people were affected by rent, transport (excluding fuel costs), and restaurant and accommodation prices. Fuel and energy costs and transport were the main contributors to inflation for those over 65 years.

A similar trend appeared by home ownership type: households renting had an estimated annual inflation rate of 4.3% compared with a rate of 4.1% for households paying a mortgage. The rate reduced to 3.7% for households that owned their home outright.

Rural household inflation was higher than for urban households, at 4.2% compared to 4%. Households with children had a lower estimated inflation rate of 3.9% compared with households without children at 4.2%. 

Single-adult households experienced 0.2% higher inflation than households with two adults.

Taking a longer-term view, the index for mortgage interest payments rose 96.3% in the past five years, prices for electricity, gas and other fuels increased 63.7%, and the index for rent went up 36.1%.

Edel Flannery, senior statistician in the prices division at the CSO, said the differences in rates of inflation are because "each household has its own unique consumption pattern of goods and services".

The CSO attributed the cost of fuel and energy, followed by rent and transport costs, as the main drivers of inflation for lower-income households in the 12 months to September 2026. 

For higher earners, transport, restaurants, and accommodation costs, including hotels, bar sales, and takeaway food and coffee, were the main drivers of inflation.