Cost of living hits six-year high as mortgages soar

SOARING mortgage interest repayments and increasing food prices have pushed the cost of living to a six-year high.

Inflation averaged 4.9% in 2007, new figures from the Central Statistics Office reveal, more than twice the rate recorded just two years ago.

The main driver of inflation in 2007 was a 40% rise in mortgage interest repayments costs. Since December 2006 interest rates have risen three times, which has added about €135 a month to the cost of repaying a typical €300,000 mortgage.