Spending in Irish pubs went up 49% in February as customers bid goodbye to Covid restrictions and spent €1.6m a day, according to AIB analysis of card spend.

But the figures also show that inflation may be beginning to bite.

John Brennan, head of SME banking at AIB, commented that consumer spending in February across the hospitality sector and in general was up as people returned to socialising again.

"However, we are noticing the impact inflation is starting to have on consumers as they spend more on certain items such as groceries, despite transacting less." he added. "Given the geopolitical situation at the moment, it’s expected that rising prices will be a continued feature of the economic landscape over the coming months for consumers."

Grocery spending increased during the month (+8%) but the number of transactions fell, which may be a sign of inflation hitting people’s pockets, AIB said.

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Donegal recorded the biggest increase in pub spending, up 60% on January, followed by Mayo (+57%) and Sligo (+57%).

Overall, spending during the month was up 7%.

Contactless and digital wallet payments were up 11% and 14% respectively, showing signs of people returning to shops instead of buying online.

On average, people spent €1.6m a day in pubs through the month, and those in Dublin spent €500,000 a day.