The cost of living crisis continues to grip consumers in Ireland despite easing inflation

The Ipsos Cost of Living Monitor is a 32-country study (including Ireland) looking at how people are doing financially and their expectations for the future. In its sixth edition, it uncovers that despite inflation rates slowing in many countries the number of people struggling financially remains high.

Key findings in the report include:

  • In 29 of the 32 countries surveyed a majority think it will take more than a year for inflation to return to normal or that rising prices will never return to normal. In Ireland, 42% think it’s going to be at least a year before we see normal rates of inflation, and 19% feel it will never happen.
  • While the “Global Economy” is seen as the biggest driver of rising prices in Ireland, (81%), 72% blame the policies of the government with the same proportion placing the blame on businesses making excessive profits. Globally, 20 countries have seen an increase in the proportion saying their government is making inflation worse compared to November 2023.
  • Almost half (47%) in Ireland think inflation is higher now than it was at the start of the year (18% believe it’s falling). Almost 3 out of 5 people (58%) think inflation is going to increase further over the next 12 months.
  • A majority in Ireland expect rises in the costs of their food shopping, motoring costs and utility bills. Across the 32 countries surveyed Ireland ranks second in the proportion expecting an increase in the overall cost of going out socialising, with 66% expecting this to be more expensive in 6 months time.
  • Looking ahead, 33% in Ireland think they will have less money to spend in the next year, while 25% expect their standard of living to fall.

Commenting on the results, Kieran O’Leary, Director at Ipsos B&A commented:

“There has been a steady decline in the rate of inflation over the past 18 months, however this is not yet felt by consumers as they see prices continue to rise. Most striking perhaps is that the improving outlook is not immediately clear to many with a majority expecting the rate of inflation to increase further over the next 12 months, and half expecting interest rates to rise. This disconnect between economic realities and consumer perception presents significant challenges for brands and election-focussed politicians alike.“

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For more details, please contact Kieran O’Leary:  Kieran.O’Leary@ipsos.com