Paul Walsh, spokesman for Peopl Insurance
Commenting on the CSO’s Consumer Price Index for October 2024,
“At 0.7pc, annual inflation is still low and continues below the 1pc rate that it fell to in September 2024 – and this will certainly be a relief to consumers.
But with inflation in certain areas dwarfing the rate of general inflation, many consumers will be simply bemused by today’s figures.
At 10.9pc, motor insurance premiums have risen at 15 times the rate of inflation and furthermore, the rate of inflation is well above average for restaurants, cinemas and package holidays. There are many people who simply can’t afford to eat out in a restaurant today – or certainly not as regularly as before the runaway inflation of recent years set in.
There are also a number of supermarket staples which have increased significantly in price during the years of record inflation – and which haven’t become more affordable since inflation started to ebb. For example, inflation is running well above average for butter, potatoes, frozen vegetables and olive oil. So for many consumers, the price squeeze is still alive and well.
Let’s not forget too that while inflation has eased, prices are still increasing – and from a much higher base. So unfortunately, consumers are still feeling the impact of the record-high inflation of recent years and this will continue for some time.
Thankfully, some elements of the Budget’s €2.2bn cost-of-living package are already starting to kick in –. such as this month’s double child benefit payment and the October social welfare bonus. These supports – and those to follow – will be badly needed by households and families in the coming months. We are into the colder and darker months of the year and so are relying more heavily on lighting and electricity. Furthermore, with Christmas fast approaching, many families will be starting to feel the financial pressures of the festive season.
It has never been more important for consumers to shop around. While the cost of many goods and services is still high, retailers and providers are still competing for business and consumers need to leverage this competition and make it work for them. Shopping around will invariably help cut costs and put more money back into your pocket.
Collectively, we need to be more demanding in how we expect our business leaders and those in the local and national public service to behave to urgently tackle Ireland’s inflation head on – and also to help the many struggling with higher prices. A lack of pricing transparency and comparability in financial services, energy, transport, legal services and many parts of retailing, leaves Irish consumers exposed to higher prices. There should be better price transparency in these areas. When consumers see product or service pricing displayed fairly and transparently, they can make better choices about their service providers and choose alternatives where available.”