Consumer concern about the cost of living fell closer to levels seen prior to April's US tariff announcements in June, the latest Consumer Mindset report from Core shows.

Around half of people remain concerned about the cost-of-living situation in Ireland as grocery price inflation rose to 4% and consumer price inflation stood at 1.7%.

The study shows that households have adjusted their spending habits in response to economic pressures, becoming more frugal and prioritising essential purchases.

Such behavioural adaptations can lead to a perceived improvement in managing living costs even if expenses remain high, but that changes in oil and energy prices, the stock exchange and trading levels would continue to influence consumer confidence.

The greatest contributors to consumer concern are higher food prices (69%) and utility bills (55%), well ahead of rising housing costs (33%) and medical expenses (29%).

A fifth of the 1,000 respondents said they were concerned by a lack of savings or financial buffer (21%), slightly more than the 18% that cited stagnant income (18%) and the impact of government policy (15%) and debt repayments (12%).

The Credit Union Consumer Sentiment survey returned a reading of 62.5 this month, up from 60.8 in May and 58.7 in April, the first back-to-back gains in confidence since July, but far below February's 74.8.

The gains in confidence appear to have come at the cost of enjoyment. Just 35% said they had experienced enjoyment the previous day to the survey, down from 40% in May.

However, happiness was the most cited emotion (45%), and stress (34%) and frustration (21%) both saw monthly declines.

Asked where they think things are improving or worsening in different areas, Irish consumers were most down on the economy, the response to social issues, care in society, affordability, housing, and their personal finances.

Conversely, they were optimistic about their social connections, state of mind, fun and joy, physical health, and response to the climate crisis.

"Despite challenges in personal finance, the Irish economy is perceived to be improving following its significant drop in April 2025, which is in line with most macroeconomic metrics," said Lindsey McAteer, senior research manager at Core.

"A simultaneous decrease in both enjoyment and frustration this month may indicate emotional detachment or fatigue rather than a clear improvement or decline in overall sentiment.

"People may be entering a state of apathy or emotional numbness as a coping mechanism in response to prolonged uncertainty or burnout. This trend is reflected in the overall mood of the nation, with feelings of joy and fun continuing to decline steadily since March 2025."

(Pic: Getty Images)