Consumers feel squeeze

Consumers were squeezed further last month as significant increases in energy, insurance, transport and clothing prices pushed the cost of living to a four-year high.

CSO figures show that consumer prices rose by 1% in March, pushing the annual rate of inflation to 2.2% — its highest level since 2008. The second consecutive month of price rises doesn’t bode well for a consumer spending pick-up.

“Stronger inflation will eat into households’ real incomes already under pressure from weak nominal pay growth and budgetary measures,” say Davy Stockbrokers.