Paul Walsh, spokesman for Peopl Insurance

Commenting on the CSO Consumer Price Index for June 2024,

“This report shows that the rate of inflation continues to fall, with prices 2.2pc higher in the year to June 2024 – a fraction of the 6.1pc rate of annual inflation recorded in June 2023[1].

While the slowdown in inflation will be a relief to many consumers, there are many areas where inflation is still running well above average, such as in transport, restaurants and hotels, and recreational and cultural services. Furthermore, double digit inflation was recorded for health insurance, certain grocery items – such as potatoes and olive oil, and diesel prices.

The rate of inflation in areas like motor and home insurance – where prices are up 8.2pc and 7.4pc respectively – is a concern.

There has been great progress in reducing the cost of claims and motor insurance premiums in recent years but a report[2] published by the Central Bank shows that following a trend whereby average premiums had been falling since the second half of 2017, motor insurance premiums are increasing. The rise in the cost of car repairs – and consequently damage claims, is one of the things likely to be pushing up motor insurance premiums.  If the cost of damage claims continues to go up, so too will the rate that motor insurance premiums will increase by. It is important that the progress made on motor insurance costs and claims costs in recent years is not undone.

The cost of home repairs has increased substantially in recent years too and so it is crucial that homeowners continue to buy home insurance. So the rising cost of home insurance is a worry as more people could find themselves struggling to afford it.

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.”

[1] See Consumer Price Index for June 2023

[2] See Private Motor Insurance Mid-year update of the National Claims Information Database (NCID)