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Lower-income households experiencing greater inflation

By November 21, 2022No Comments

Inflation continues to be greater for households on lower incomes, rural households and those headed by people over 65.

This is largely because these households spend a greater proportion of their incomes on utilities, fuels and transport costs.

It is these areas where prices have gone up the most.

According to the latest Estimated Inflation by Household Characteristics publication from the Central Statistics Office, inflation experienced by the lowest income households in September was 9.5%.

By contrast, the highest income households experienced inflation of 7.5%.

The annual rate of inflation measured by the Consumer Price Index was 8.2% in September.

The CSO also published this analysis in March and June.

Renters experienced inflation of 8.3% while those renting from Local Authorities experienced inflation of 9.1%.

Urban households faced inflation of 8.1% while rural households faced 8.7%.

Households headed by people aged under 35 and between 35-64 faced inflation of 8%.

Households headed by over-65’s faced inflation of 9%.

Joseph Keating, Statistician in the Prices Division, said “each household has its own unique consumption pattern of goods and services and therefore its own personal experience of inflation”.

The CSO noted that electricity, gas and other fuels have contributed more than a quarter of the rate of inflation over the past year.

For the lowest income households, they accounted for just over a third of inflation compared to just over 21% for the highest income households.

For those renting privately, rent was the largest contributor to inflation accounting for 36% of inflation, ahead of utilities and fuels at 21%.

Article Source: Lower-income households experiencing greater inflation – Robert Shortt – RTE

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