Cost of living in Ireland: How quickly are prices rising?
Tomas Doherty
Prices in Ireland went up by 2.2 per cent in the 12 months to April 2025, according to the Central Statistics Office (CSO).
The figures show that inflation, the rate at which prices are rising, has ticked up slightly since February when the annual rate was at 1.8 per cent.
The CSO monitors price changes over the previous 12 months to calculate inflation.
Inflation soared in 2022 to reach 9.2 per cent, mainly due to greater demand for oil and gas after the Covid pandemic. Energy prices surged again in the aftermath of Russia's invasion of Ukraine.
It then remained well above the European Central Bank's 2 per cent target partly because of high food prices.
Some parts of the economy are still experiencing substantial price jumps.
The most significant increases in the year to April were in recreation and culture (up 4.2 per cent), and food and non-alcoholic beverages (up 3.4 per cent). The annual change in recreation and culture costs reflected a rise in prices for package holidays, the CSO said.
There were price increases over the 12-month period for a pound of butter (up 97 cent), Irish cheddar per kg (up 79 cent), two litres of full-fat milk (up 27 cent) and brown sliced pan bread (up 2 cent).
Potatoes and spaghetti saw slight price drops, while the cost of a white sliced pan bread loaf was unchanged compared with April last year.
The figures come weeks after the European Central Bank (ECB) decided to cut interest rates to 2.25 per cent at its April monetary policy meeting.
Falling interest rates will lead to cheaper borrowing for consumers, though savers will see lower returns.
Robert Purdue, head of dealing at global financial services firm Ebury, said the latest figures are a "wake-up call" that inflationary pressures are still alive and kicking.
"Irish consumers have been loosening the purse strings this April, with celebrations like Easter and St Patrick’s Day boosting food and alcohol sales," he said. "Warmer weather and school holidays have also encouraged more spending on leisure activities.
"Key Irish industries, such as pharma, are still very much in the firing line of US President Trump’s tariff ambitions, however, and while the Euro has gone from strength to strength since Trump’s 'Liberation Day' trade policy announcement, the inflationary benefits of this may not outweigh the price rises that could come from more expensive imports."
"With inflationary risks still very much on the horizon – this consecutive uptick in April will be closely watched. Until a concrete trade agreement with the US is reached, businesses must stay prepared — managing FX exposure, pricing risks, and maintaining financial flexibility to stay resilient in the face of potential volatility."
Earlier this year the Taoiseach indicated that there were no plans to continue energy credits or introduce a new cost-of-living package in the next budget.
Energy credits were included in last year’s budget in October as part of the Government’s response to inflation and cost-of-living challenges.
It was announced that all domestic electricity customers would get €250 off their electricity bills through two instalments. Similar measures had been announced in previous budgets.
However, Taoiseach Micheál Martin ruled out continuing the measure because "inflation has come a way down."
Previous budgets included one-off additional payments for those receiving a range of other allowances, such as child benefit, disability allowance and fuel allowance. There were also tax measures including the renters’ tax credit.
Mr Martin did not specify if these measures would be affected.
