Consumers made nearly 500,000 fewer transactions in June but spending still rose 4% with details of the increase in the average transaction highlighting the effect of inflation on the high street.

Figures from AIB show the cost of the average transaction last month rose 47 cents in pubs and off-licences, 45c in restaurants and 16c in grocery stores, with all those sectors seeing an increase in spend despite a reduction in transactions.

Hotels saw the largest month-to-month growth in spending (+11%), and the average transaction in the sector rose €85.87 to €90.16.

"During June, consumers made fewer transactions, but those transactions were on average for larger amounts," said John Brennan, head of SME banking at AIB. "This is an indicator that inflation is starting to impact Irish purchases and consumer behaviour.

"The food industry is particularly affected when it comes to changes in their supply chain costs, such as the price of petrol, fertiliser and feed for livestock."

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AIB compiled the data from over 1m anonymised and aggregated card transactions made by Irish consumers, and it shows around €87m per day was spent through June.

Digital wallet payments rose 10%, with consumers spending over €12m per day using the technology, equating to one in every €7 spent during the month. 24 June, the day after pay day for most people, was the busiest day of the month

“Overall consumer spending was up 4% in June, with digital wallet payments up 10%, showing how increasingly popular the cashless payment method is becoming with the public," Brennan added.

Spending in both airline travel (+0.18%) and homeware (0.06%) was more or less flat, but clothing (+3%), electronics (+4%) hardware (+1%) and health & beauty (+3%) were all up.

Bank of Ireland said last week that total spending declined 5% in June, with only cinemas bucking the trend as consumers spent an additional 25% at the movies.

(Pic: Getty Images)