From food and fuel to beer and broadband - how price increases cost families 3,500 euros extra per year

From food and fuel to beer and broadband – how price increases cost families 3,500 euros extra per year

The price we pay for almost everything has gone up and it will probably continue to rise. Shocking and repeated upswings suck money out of household budgets.

Here we take a look at a family’s typical expenses and show how much prices have gone up this year. In total, the average family in Ireland probably faces around € 3,500 in extra costs over a year.

Groceries

Food price inflation in Ireland has reached 5.5 percent, the first time it has risen above 5 percent since August 2013, according to figures published by the research group Kantar. The group analyzes the prices of more than 30,000 products to determine the inflation rate.

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The figures show that the average household is facing an annual increase in the cost of groceries by € 330.

Higher energy prices, accelerated by the ongoing conflict in Ukraine, have made it more challenging for producers to produce and transport food.

Since the end of January, prices have risen in Aldi, Lidl, Tesco, SuperValu and Dunnes, where three out of five have an increase of € 2 or more.

Basic products such as milk, bread, pasta, cooking oils, coffee and meat have all risen in price.

Some estimates warn that the cost of groceries will rise by € 800 this year.

Fuel

The relentless increase in the cost of petrol and diesel is causing huge concern for motorists, as it is a huge burden on revenue. It now costs more than € 100 to fill a typical family car, with the annual increase in the cost of motor fuel now € 750 compared to last year, according to AA Ireland.

Many people do not remember having to pay € 100 to top up.

And the omen is not good for the next few months, with a ban on Russian oil and a reluctance on the part of OPEC members to fill the void, which means that prices are likely to remain high.

Energy

Never before have we had so many and so large increases in the costs of electricity, gas and household oil.

The consequence of double-digit cost increases last year and earlier this year has added € 1,100 to the cost of heating and lighting the average home, according to the Economic and Social Research Institute (ESRI).

And it’s not just unit prices for energy that have risen to reflect crazy price increases in wholesale prices.

Two of our largest energy supplies have used the current energy crisis to raise their standing charges.

Electric Ireland’s standing charge for electricity rose by 35 percent in May. Bord Gáis Energy’s standing fee for electricity increased by 29 percent earlier this year and 43 percent for gas, according to the price comparison site Bonkers.ie.

This means that even customers who reduce their use to zero will still have to cough up lots of money.

ESRI estimates that the typical household faces increases of € 2,000 over a year.

Rents and mortgages

The cost of renting has doubled in the last decade.

The average national price for a new rental, if you can find one, is now € 1,567, according to Daft.ie.

Dublin rents average € 2,100 a month after increasing by 10% in one year.

It is cheaper to take out a mortgage than to rent, but many tenants either do not qualify for a mortgage or can not find anything in their price range.

And mortgage costs are rising. Nearly half a million households are facing higher costs when the European Central Bank starts raising interest rates from July. This is because they are on variable or tracking rates.

These mortgage holders will suffer the first in a series of interest rate hikes from next month, a move that will push up annual repayments of more than 1,000 euros for a family with a typical tracker.

Beer

The cost of a pint is also increasing. A pint regular now gives you € 5.20 at most pubs, but much more at some. Stocks have increased from € 5.30 to € 5.50 per pint.

And a can of stock purchased from a non-license is now € 2.16, an increase of 28c in one year, according to the CSO.

The introduction of the lowest unit pricing in January was an example of very poor timing.

Child care

One in five families with young children pays more than 1,200 euros per month for childcare.

One third pay more than 1,000 euros, according to a survey conducted by Newstalk. Childcare costs in Dublin have increased by 20% over the last four years – with parents now paying an average of € 1,276 per month.

cup of coffee

The average cup of coffee in Ireland costs around € 3.65.

Late last year, the Irish coffee industry warned of expected increases in the cost of a morning cup of Joe following adverse weather conditions in Brazil, which led to the destruction of much of the region’s harvest.

The pandemic has also had an impact on the global supply chain and coffee drinkers are beginning to feel pinched during price increases.

Broadband / mobile

Hundreds of thousands of domestic Eir customers and small businesses will be affected by price increases from August.

Around 500,000 customers will have to pay 5 euros a month more for landlines, TVs, broadband and mobile services. This increase, which includes VAT, will mean that customers will pay an extra € 60 per year, which will increase the cost of living.

In September alone last year, Eir raised voice and broadband prices by € 6 a month. This added € 72 per year to the average bill.

Vodafone and Three Mobile are also raising prices.

Public transport

Now for some good news. Public transport prices have been reduced – the first such reduction in almost three-quarters of a century. It is part of the government’s plans to contribute to more sustainable travel.

Prices for Dublin Bus, Luas, Go Ahead Ireland and Irish Rail and Dart commuter services in the Greater Dublin Area will fall by 20% for the rest of this year.

All Irish Rail intercity and commuting prices across the country will also fall.

Prices for bus Éireann and Local Link services were reduced by 20. Those between the ages of 19 and 23 can get a 50 discount on the prices of all subsidized public transport by using an existing Student Leap card or applying for a new Young Adult Leap card.

Pharmacy

More good news: the pharmacy chain Boots Ireland has promised to freeze the price of over 1,300 products. Boots said the lines where prices freeze cover beauty, health, well-being and baby, and include everyday things.

Pay

With all these price increases, consumers need to earn more. But income increases have been small, albeit non-existent, for many.

The average hourly income was € 27.33 in the first three months of this year, an increase of only 1.9 percent from the same period last year, according to the Central Statistics Office.

In Dáil this week, Finance Minister Paschal Donohoe said the government can move income tax deductions and ties into the budget.

That would increase revenue, he said.

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