Inflation dropping, more people working than ever before, and rising house prices: Ireland 2023

The cost of food contributed to inflation last year. Picture: Leah Farrell/RollingNews.ie

Inflation dropping, more people in work than ever and house prices still on the rise — there was some change but also more of the same in 2023, according to the Central Statistics Office’s Year in Numbers.

Furthermore, new statistics published showed 40% of adults have experienced sexual violence in their lifetime, rising to 52% for women, painting a grim picture of the extent of this issue in Ireland today.

The story of 2023 told through CSO data - Providing insight on some of the main themes of the year using CSO charts and datahttps://t.co/J3TAp3UEwc#CSOIreland #Ireland #StatisticalYearbook #Statistics #YearInNumbers pic.twitter.com/io8EaRrrM4

— Central Statistics Office Ireland (@CSOIreland) January 3, 2024

The CSO, which marks its 75th year this year, on Wednesday published its latest annual update focusing on key themes of Irish life such as inflation, housing, and population change which “tell the story of 2023”.

After a period of extremely high inflation, it said its consumer price index in November stood at 3.9%, which was the lowest rate for 25 months. This compared to a high for the year of 8.5% in February 2023.

The CSO said throughout 2023, energy prices falling and mortgage interest rate hikes had large impacts on its consumer price index.

The spike in mortgage interest rates peaked in August, when they were up 51.3% on the previous year.

Other factors contributing to inflation last year included the price of food, the cost of eating out and staying in a hotel.

House prices

In terms of house prices, CSO figures show the residential property price index reached its highest ever level in October, which was 5.1% greater than its highest level at the peak of the property boom in April 2007.

“The median or mid-point price of a dwelling steadily increased over the course of the year, from €305,000 in January to €323,000 in October 2023, which is the latest month for which data is available,” the CSO said.

The number of new homes built rose in six of the eight regions of Ireland in the 12 months to the third quarter of 2023, with Dublin (up 36.7%) seeing the highest increase. However, in Cork and Kerry there was a decrease of 11.8% in the number of new homes built in the same period.

The labour market continued to grow in Ireland throughout 2023, with the estimated number of people in work in Ireland heading into the autumn standing at just over 2.65 million.

The employment rate in the second quarter of this year, which measures the working age population aged 15 to 64, hit 74.2%. This was the highest point in the 25 years since the series began.

The CSO said: “As of Q3 2023, average weekly earnings were €907.72, up by almost 33% when compared with €682.79 recorded 10 years earlier in Q3 2013. It is worth nothing average weekly earnings have gone up in every sector of the economy over that 10-year period.” 

Workers in the information and communication sector have seen the biggest rise in the last 10 years, earning over €500 more per week in 2023 compared to 2013.

Almost 75% of the top 1% of earners were male. And, of the top 10% of earners, just over 70% were male and 30% were female.

The data also shows strong growth in the number of electric and plug-in hybrid vehicles licensed in Ireland.

Almost half (45%) of all new private cars licensed in 2023 were electric or plug-in hybrids, it added.