Consumer Price Index shows rise in cost of everyday goods and services

The cost of many everyday goods and services has rocketed since austerity measures were introduced in 2008.

Figures published by the CSO yesterday highlight how austerity has impacted on consumer spending, with expenditure on goods and services falling by 12%, or €11.5bn, since 2008 to €82.6bn last year.

An analysis of the Consumer Price Index shows health insurance has more than doubled, while the cost of education has jumped by 30%, public transport by 29%, electricity by 31%, and gas by 27%.

Total expenditure on food, drink, and tobacco has fallen by 5%, while money spent on mortgage interest and rents has fallen by 11%.

Although the overall cost of living has fallen by 1% on average since the start of the economic crash, analysis by the Irish Examiner highlights widely diverging price increases and decreases across a range of household goods and services.

While the decrease is driven largely by a drop in mortgage interest and rents, down 33% and 17% respectively, about half of all items used in calculating the price index have risen since 2008.

The most striking price hike is the cost of health insurance, which has more than doubled since 2008 — rising by 109% on the back of annual price rises by insurance firms such as VHI, Aviva, and Laya.

All forms of insurance in general have risen by 64% over the period; house insurance is up 34% and motor insurance has risen 13%.

Bus fares have also jumped sharply — up 46% — with the prospect of further price increases in early 2014.

Average air fares are 23% more expensive than five years ago, while rail fares are 19% dearer and ferry prices are up by 16%.

Transport costs generally have risen due to a 20% hike in petrol prices, which has also pushed up the cost of package holidays by 14%. The cost of motoring has been cushioned by a drop of 19% in the price of cars.

Education costs have also been grossly inflated: The cost of third-level fees is up 51%, second-level education is up 15%, and pre-school and primary costs have risen 12%.

Although average grocery costs have dropped 6% in the past five years, a number of common food items have recorded substantial increases including sugar, cocoa and powdered chocolate (all up 33%), flour (+23%), breakfast cereals (+13%), butter (+11%), and beef (+7%). In contrast, the price of other groceries have fallen significantly.

Energy costs have also risen dramatically: The price of electricity is up 31% and gas has risen 27%.

Health costs have risen by 9% on average, with the cost of dental services up 13% and hospital fees by 23%.

However, it is not all bad news; many prices have fallen noticeably over the same period, particularly in relation to clothing, footwear, furniture, and mortgages.

The most dramatic price decrease is for computers, which are down 67%, while the average price of cameras, video cameras, and MP3 players fell by around 50%.