Inflation steady at 2.7% as grocery and insurance costs continue to climb

Inflation holds at 2.7% as grocery, rent and insurance costs continue to rise.

The rate at which the cost of living is rising in Ireland remains steady, with inflation easing by 0.1 percentage points to 2.7% in the year to January, the latest figures show.

The Central Statistics Office (CSO) published its latest Consumer Price Index on Thursday, showing that increases in the cost of groceries, electricity, childcare, eating out and insurance are outstripping the general rate of inflation in the Irish economy.

“The most significant increases in the 12 months to January 2026 were seen in Education Services (+8.9%) and Clothing & Footwear (+7.3%),” statistician Anthony Dawson. 

“The annual change in Education Services reflects a rise in costs associated with third-level education which came into effect from October 2025.” 

When it came to the food shop, consumers paid more in January for particular products compared to the same time last year.

Beef is up 23.7%, while poultry is up 8%, eggs are up 5.7%, butter is up 4.5%, chocolate is up 9.3% and coffee is up 8.4%.

Overall, food and non-alcoholic drinks rose 3.9% in the year to January, according to the CSO.

“There were price increases in the 12 months to January 2026 for sirloin steak per kg (+€4.68), Irish cheddar per kg (+45c), a pound of butter (+34c), 2 litres of full fat milk (+6c), and an 800g loaf of white sliced pan (+4c),” Mr Dawson said.

“There were decreases in the price of a 2.5kg bag of potatoes (-22c), and an 800g loaf of brown sliced pan (-1c) when compared with January 2025.” 

The statistics show that many other essentials are also rising.

Rents rose 3.3% last year, while mortgage interest rates rose 4.2%. Bin collections rose by 7.4%, while maintenance costs for multi-occupied buildings such as apartment blocks increased by 9.7%.

Electricity costs rose by 4.7% over the past year, while home heating oil fell 7.9%, the CSO said.

The cost of eating out in restaurants rose 3.4%, while prices in bars and pubs rose by 3.7%.

Following multiple price announcements from major insurers, health insurance rose 8.7% on average, while travel insurance rose by 4.7%.

The national average price of a pint of stout was €6.10 in January, but this is likely to rise in next month’s figures following recent price hike announcements from Diageo and Heineken.