Inflation falling but consumers see spike in cost of going on summer holidays

Air travel is also up significantly, with flights 14.3% more expensive than at the same time last year.

Irish consumers faced a huge spike in the cost of going on their summer holidays this year, with package holidays rising a staggering 65% in the 12 months to July 2023, new figures show.

New figures from the CSO’s Consumer Price Index show that even between June and July, the price of package holidays rose by 14.8%. Air travel is also up significantly, with flights 14.3% more expensive than at the same time last year.

Furthermore, staying at home is more expensive with the price of accommodation services such as hotels and guesthouses up 6.2% in the last year while the cost of eating out also rose, up 6.4% on the year.

The figures from the latest Consumer Price Index show that inflation in Ireland is still falling from its heights reached last year, now standing at 5.8% in July 2023 (down from 6.1% in June).

However, it is the 22nd straight month that the consumer price index has been above 5%, indicating an almost-two-year period of sustained inflation.

Back to school

In a month when back-to-school spending begins in earnest, the figures show that the likes of stationery and drawing materials are up 3.4%.

The cost of shoes is up 1.2% on last year while clothes have risen in price by just 0.5%. Last week, a survey for children’s charity Barnardos said that the average cost of sending a primary school child back to school was around €320, but rising to €972 for a child starting secondary school.

Recreational activities like going to sports events is up 5.3% on last year, while the cost of participating in sports has risen 7.4%.

Consumer prices rose by 5.8% over the 12 months to July 2023https://t.co/khgzjIXjOb#CSOIreland #Ireland #CPI #ConsumerPrices #Inflation #Deflation #Prices #BusinessStatistics #Business #BusinessNews #IrishBusiness pic.twitter.com/phMwTkLiRC

— Central Statistics Office Ireland (@CSOIreland) August 10, 2023

Elsewhere in the Consumer Price Index, the figures show some of the factors that have been driving inflation for some time continue to do so, with the price of food rising 8.5% in the last year, while electricity is up 31.8%, and gas is 45.6% higher.

Energy costs still remain significantly higher than last year, despite the price of wholesale electricity falling. The Government has said that companies should be lowering their prices by now, but none of the main suppliers have made significant steps as of yet.

The figures also break down the increase in the cost of staples of the weekly shop, such as:

• White sliced pan of bread - €1.65 (up 5c) 
• 500g of spaghetti - €1.46 (up 18c) 
• Full fat 2l of milk - €2.20 (up 15c) 
• 2kg bag of potatoes - €3.43 (up 5c) 
• 1lb of butter - €3.76 (up 24c) 
• Irish cheddar cheese per kg - €10.39 (up 41c) 
• Medium size full chicken - €5.81 (up 41c) 
• Large eggs per half dozen - €2.22 (up 32c)

On the back of new price rises announced by Diageo, the price of a pint of some popular brands are set to rise further this month. But the index for July also captures price rises across the board over the last year.

The average price of a pint of stout in Ireland last month was €5.52. This was up almost 40c on last year. A pint of lager costs on average just under €6, meanwhile, a rise of just over 40c.