Families suffer as cost of living soars

Cash-strapped families face higher prices for everyday items like food and clothes as inflation rose three times faster than expected last month.

The CSO Consumer Price Index (CPI) jumped 0.6% in August, bringing the annual rate to 2%.

Ahead of a hairshirt budget in December, and following the recent announcement of a 8.5% hike in gas prices and a 5.9% rise in electricity from next month, economists have warned prices are likely to climb even higher before the end of the year.