Inflation reached 9.1% in June, hitting a 38-year high for the second successive month, according to the latest Central Statistics Office (CSO) figures.

The annual increase in consumer prices jumped from 7.8% to the highest level measured since the second quarter of 1984 when inflation was 9.7%.

Rising energy, fuel and transport costs continued to drive price increases last month, with inflation in the housing, water, electricity gas & other fuels (+22.5%) and transport (+20.4%) exceeding a fifth.

More specifically, the price of electricity has risen 40.9% in the past year, home heating oil has increased 115% and natural gas is up 51%, while the price of petrol (+43.8%) and diesel (+50.7%) has rocketed, and food inflation stands at 6.8%.

Alcoholic beverages & tobacco (+8.2%) and restaurants & hotels (+7%) also saw significant annual increases, but there were contractions in the cost of miscellaneous goods & services (-1.3%) and education (-0.8%).

In Association with

The rise price of stables such as a large white sliced pan (+13.9c), a large brown sliced pan (+16.1c), spaghetti (+18.3c), and potatoes (+19.3c) have added to the average shopping bill, while the price of a pint of stout hit €5.13 in May, and a pint of lager rose to €5.52.

Consumer prices increased by 1.3% during the month compared to 0.2% in June 2021, the largest uptick registered since March, but the surge had been flagged when Eurostat estimated annual inflation of 9.6% in Ireland earlier this month.

Transport (+5.1%) and food and non-alcoholic beverages (+2.3%) saw the most significant monthly price changes, with reductions in the cost of communications (-1.4%) and clothing & footwear (-1.3%).

Barry Cahill, director of Taxback.com, said people are "besieged with the impact of inflation on day-to-day living costs and it’s uncertain how much more they can withstand," adding that nine in 10 people have felt the pinch of soaring home and transport costs this year.

“Spending less was by far the most popular measure people said they plan to take to curb the impact of rising prices – which will have a knock-on effect on the wider economy, particularly at a time when businesses are trying to recover from the pandemic," he added.

“From our conversations with the employers that we have been working with throughout the country, we’ve learnt that there’s widespread concern across these organisations around the wellbeing of their staff, many of whom have voiced their anxieties over their current financial struggles."