Cost of consumer goods continues to rise despite ECB efforts

In terms of the average prices of common household groceries, all the staples showed increases over the past year. Picture: Larry Cummins

The price of consumer goods rose a further 6.3% in the year to the end of August, latest figures show, with inflation showing no sign of abating.

Consumer prices rose by 6.3% over the 12 months to August 2023https://t.co/dmPPFVA9hl#CSOIreland #Ireland #CPI #ConsumerPrices #Inflation #Deflation #Prices #BusinessStatistics #Business #BusinessNews #IrishBusiness pic.twitter.com/MvAMMegOf9

— Central Statistics Office Ireland (@CSOIreland) September 7, 2023

August marked the 23 rd straight month where Irish consumer goods costs rose by at least 5%, the latest edition of the CSO’s consumer price index shows. 

This was despite unprecedented attempts by the European Central Bank to curb crippling inflation across the eurozone, with nine separate hikes in the ECB’s base rate over the past year alone.

In fact, excluding energy and unprocessed foods, the Consumer Price Index rose even higher — by 6.4% as at end August.

Once more, housing and utility costs were the main driver of the increases, up 17.3% over the past 12 months, while recreation and culture costs also showed a large increase, up 12.9%.

The only sectors to show a fall in costs at the end of August were education, down 6.3%, and transport, down 2% from the prices seen at the end of August 2022.

The fall in the education index is primarily driven by a reduction in costs associated with third-level education, the CSO said.

Consumer prices rose slightly month-on-month meanwhile, up 0.7% between July and August of this year.

Those month-on-month changes were primarily driven by a 4.2% hike in clothing and footwear costs from end July, with increases in home heating oil, mortgage interest repayments and rents fuelling a 1.7% monthly jump in terms of housing and utility costs.

Recreation and culture prices were down on the month, however, primarily as a result of a drop in the price of package holidays, which nevertheless remain up 57.9% year-on-year.

In terms of the average prices of common household groceries, all the staples showed increases over the past year.

• White sliced pan — €1.65, up 4c
• Spaghetti 500g — €1.48, up 16c
• Bag of potatoes 2.5kg — €3.47, up 11c
• Full fat milk — €2.19, up 11c
• Irish Cheddar cheese 1kg — €10.61, up 63c
• Butter 454g — €3.77, up 19c
• Dozen large eggs — €2.22, up 31c
• Medium chicken 1.6kg — €5.85, up 33c

The cost of Irish cheddar cheese rose by 22c per kilogram in just the month of August alone.

The average price of a pint of stout, meanwhile, continued to rise, costing an average €5.54 at the end of August, up 40c for the year and 2c since the end of July.

Utility costs, which have risen sharply over the past 18 months, are likely to fall in the next CPI index, as energy providers across the country begin to reduce prices. 

Electric Ireland was the latest provider to cut prices on Thursday, with up to 12% reduction for its gas and electricity customers on Thursday.

However People Before Profit said the cuts were “nowhere near enough” to tackle the cost-of-living crisis.

Dublin TD Paul Murphy said reductions by Energia, Pinergy and Electric Ireland “do not cut it” given the sharp increases seen over the past 12 months in the same sector. 

He urged the Government to introduce “radical measures” in the upcoming budget to protect people from the effects of non-stop inflation.