Inflation returns as cost of goods surges

THE prices of essential goods and services have increased for the first time since December 2008, with the latest inflation figures showing a sharp rise in the cost of mortgages, clothes, education, travel, alcohol and insurance.

In further bad news for consumers, Quinn Insurance, which provides cover for one in five motorists in Ireland and insures thousands of homes, has confirmed it is likely to increase premiums by double-digit figures in the coming months.

The latest Central Statistics Office figures show the cost of living has been hit by the first annual increase since the start of 2009, driven by mortgage interest hikes, increasing bills for education and rising telecoms charges.