Cost of living - Inflation rise could affect election

WITH inflation rising much faster here than predicted, people on social welfare, as well those on poor pensions, the elderly, and first-time home buyers on crippling mortgages, are facing a hair-shirt winter.

Due mainly to the rising cost of mortgages, petrol, diesel and home heating oil, the cost of living in Ireland is now significantly higher than in other eurozone states.

With the latest figures reflecting the fastest annual rise in three years, inflation rose to 4.2% in July from 3.9% in June. Hopefully, rising interest rates will put a brake on inflation.

Meanwhile, the mounting trend could decide the outcome of next year’s General Election. With the coalition under pressure to take steps to off-set the impact of inflation, the last thing the country needs is a give-away budget or a vote-buying spending splurge from the Coalition.