Price rises are causing the cost of living in Ireland to increase. Rising inflation, in large part due to the pandemic and the war in Ukraine, is affecting all prices from everyday costs to larger purchases such as motors and housing. Continue reading to find our blog posts that highlight financial issues caused by price rises in Ireland.
Price shock: Why car prices are being driven higher
The price of cars has increased noticeably. Buying a car has a big impact on a household budget. Families often require a loan or other financial arrangements to make a purchase of this size. This means it often comes with high weekly or monthly repayments.
The CSO’s most recent consumer price index brings us up to April. It states that the price of motor cars specifically rose by 12.7%. This huge rise in price is largely due to a shortage of semiconductors or computer chips. This shortage is a knock on effect of the pandemic and is unlikely to be resolved any time soon.
The lack of new cars being produced is also driving up the price of used vehicles. Since fewer new vehicles are purchased, there are fewer used vehicles on the market and a higher demand for this cheaper option.
62% cutting back on food spending as prices rise – PTSB research
New research has found that 62% of people feel that they will need to cut back on food spending in response to rising costs. There are also a large number of people who are concerned that they will be unable to afford higher energy bills.
Rising living costs are at the forefront of many consumers’ minds which has caused a high rate of consumer pessimism. Many believe that they will be less well off in a year’s time. It is believed important to build financial resilience over the coming months to improve the morale of consumers.
A large number of consumers are planning to switch their mortgage, bank, power or gas providers, car insurers, and TV or broadband providers in response to the anxieties of rising costs.
Building input price rises could negate easing in property price growth – BPFI
Analysis from the Banking and Payments Federation Ireland (BPFI) predicts that an increase in the supply of housing may be contributing to an easing in the pace of growth in property prices.
However, BPFI warns that any easing in price growth may be offset by cost pressures in the construction sector. This will likely have a knock-on impact on house price inflation.
The latest Housing Market Monitor from the BPFI shows that average property prices have been increasing on an annual basis since early last year. The report notes that a significant amount of apartment units, an increasing share of housing output, are to be completed in the second quarter of 2022. This is hoped to ease the cost of housing due to increased supply. Inflation of building material and hourly labour costs are however likely to increase the cost of new housing. Average housing prices have more than doubled since their low in 2013.
Stay up to date on the effects of rising inflation and the state of the economy with Mark Kennedy & Co.