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This report updates the CSO’s research paper on Estimated Inflation by Household Characteristics March 2022, to include estimates for the latest available three months of April, May and June 2022. The estimates of inflation for different categories of household are presented for two time frames: the five years from June 2017 to June 2022, and the twelve months from June 2021 to June 2022.
The Consumer Price Index (CPI) is designed to measure the annual rate of inflation, i.e. the change in the average level of prices paid by households for consumer goods and services. The index follows established international practice for consumer price indices. The CPI measures the change in the level of prices paid by households for a fixed basket of goods and services. Price indices for each CPI item are calculated and then weighted together by the proportion of total consumer expenditure that is spent on each, to give the total Consumer Price Index.
The fixed basket of goods and services measured in the CPI is comprehensively updated every five years based on the CSO’s Household Budget Survey (HBS). The HBS provides a detailed profile of household expenditure, item by item. Following each HBS, the CSO reviews the basket of goods and services included in the CPI. The HBS is also used, together with other data, to establish the weights (i.e., the relative importance of each item as a share of total consumer spending) used in calculating the index and these weights are updated annually. The expenditure weights used in calculating the CPI represent expenditure on consumer goods and services by private households, visitors to Ireland, and institutional households. The most recent HBS, measuring expenditure by private households, was in 2015/16.
The CPI is a measure of average inflation, based on average expenditure weights.
However, every household has its own unique consumption pattern and therefore its own personal experience of inflation. Households that spend a higher proportion of their total expenditure on goods and services that are increasing in price by more than the rate of inflation, will experience higher inflation than the CPI average rate. While it would not be feasible to calculate a CPI for each individual household, research in Ireland and other countries has highlighted the value of compiling inflation estimates for different groups or cohorts of the population.
Price increases had remained relatively stable for the last number of years, with annual changes in the CPI remaining under +2.0% between September 2012 and June 2021 inclusive. While prices decreased on an annual basis through much of 2020, inflation has been increasing since April 2021. In July 2021, annual inflation was 2.2% and the rate of inflation continued to rise for the rest of the year, exceeding 5% in each of the final three months of 2021.
In 2022 so far, the annual rate of inflation has been 5.0% in January, 5.6% in February, 6.7% in March, 7.0% in April, 7.8% in May, and 9.1% in June.
The increasing rate of inflation since the middle of 2021 has prompted greater interest in price change and its effect on households. A paper by the Central Bank of Ireland in February 2022 addressed the topic of Household characteristics, Irish Inflation and the cost of living.
This report undertakes a similar analysis at a more detailed level. It updates the CSO’s earlier report on this topic and now provides estimates up to June 2022. The estimated breakdowns of the CPI results by household characteristics from June 2017 up to June 2022 are calculated by combining the CPI results with more detailed expenditure data from the 2015/16 HBS. The household groups analysed include households grouped by equivalised gross household income deciles, by household tenure, by the location of the household (urban/rural), by the age of the household reference person, and by the composition of the household.
See also: Information Note - The Consumer Price Index (CPI) Explained
In the tables and commentary, the following periods are distinguished:
In the five years from June 2017 to June 2022, the CPI increased by 12.0%, most of this increase being concentrated in the final 12 months. Between June 2017 and June 2021 (four years), the CPI increased by 2.7%; and in the 12 months from June 2021 to June 2022, the CPI increased by 9.1%. See Table 1.1.
Further details for selected CPI subindices are shown in Table 1.1.
| Table 1.1 Change in All Items CPI and selected subindices, June 2017 to June 2022 (5 years), June 2017 to June 2021 (4 years) and June 2021 to June 2022 (1 year) | ||||||||
| 01. Food & Non-Alcoholic Beverages | 02. Alcoholic Beverages & Tobacco | 04.1 Rent | 04.2 Mortgage Interest Payments | 04.5 Electricity, Gas & other Fuels | 07. Transport | 11. Restaurants & Hotels | CPI All Items | |
| Jun-2017 to Jun-2022 (5 years) | 2.4 | 19.5 | 26.8 | 12.0 | 83.8 | 25.2 | 16.3 | 12.0 |
| Jun-2017 to Jun-2021 (4 years) | -4.0 | 10.4 | 13.8 | 7.5 | 15.0 | 4.0 | 8.7 | 2.7 |
| Jun-2021 to Jun-2022 (1 year) | 6.7 | 8.2 | 11.4 | 4.2 | 59.9 | 20.4 | 7.0 | 9.1 |
| CPI All Items | 01. Food & Non-Alcoholic Beverages | 02. Alcoholic Beverages & Tobacco | 04.1 Rent | 04.2 Mortgage Interest Payments | 04.5 Electricity, Gas & other Fuels | 07. Transport | 11. Restaurants & Hotels | |
| Jun 2017 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| Jul 2017 | 100 | 100.3 | 100.3 | 100.3 | 100.1 | 100 | 102.4 | 101.1 |
| Aug 2017 | 100.4 | 100.7 | 99.5 | 101 | 100.3 | 100.3 | 102.8 | 101.5 |
| Sep 2017 | 99.8 | 99.9 | 99.7 | 102 | 100.1 | 100.8 | 98.9 | 100.8 |
| Oct 2017 | 99.7 | 100.3 | 100.7 | 102.5 | 100.3 | 102.6 | 97.8 | 100 |
| Nov 2017 | 99.5 | 99.9 | 100.1 | 102.5 | 99 | 105.1 | 98.2 | 99.2 |
| Dec 2017 | 99.4 | 99.2 | 99.4 | 103.1 | 99.3 | 105.3 | 99 | 99.1 |
| Jan 2018 | 98.7 | 99.4 | 102.7 | 103.3 | 99.2 | 105.9 | 97.8 | 98.3 |
| Feb 2018 | 99.6 | 98.4 | 102.1 | 104.3 | 99.5 | 106.6 | 99.4 | 99.1 |
| Mar 2018 | 99.9 | 98.7 | 101.5 | 105.1 | 99 | 106.8 | 100.9 | 100 |
| Apr 2018 | 99.7 | 98.1 | 102.2 | 105.5 | 99.3 | 107.1 | 99 | 100.4 |
| May 2018 | 100.3 | 98.4 | 102.5 | 106 | 99.3 | 108.1 | 100.9 | 101.3 |
| Jun 2018 | 100.4 | 97.9 | 102.8 | 106.1 | 99.6 | 109.2 | 101.5 | 102.1 |
| Jul 2018 | 100.8 | 98.2 | 103.1 | 106.3 | 99.5 | 109.9 | 104.7 | 102.9 |
| Aug 2018 | 101.1 | 98.1 | 102.4 | 107.3 | 99.9 | 113.3 | 103.6 | 103.7 |
| Sep 2018 | 100.7 | 97.7 | 102.9 | 108.1 | 99.9 | 113.7 | 101.1 | 103 |
| Oct 2018 | 100.6 | 98.1 | 103.3 | 108.8 | 100.2 | 112.8 | 101 | 102.1 |
| Nov 2018 | 100.1 | 97.9 | 103.2 | 109.3 | 100.2 | 111.9 | 99.1 | 101.2 |
| Dec 2018 | 100.1 | 97.8 | 102.2 | 109.5 | 100.6 | 110.6 | 99.6 | 101.3 |
| Jan 2019 | 99.4 | 97.9 | 105.4 | 109.9 | 101.4 | 109.9 | 96.5 | 101.9 |
| Feb 2019 | 100.2 | 97.7 | 104.8 | 110.2 | 101.4 | 110.4 | 98.1 | 102.7 |
| Mar 2019 | 101 | 98.1 | 104.6 | 110.6 | 101.7 | 111.7 | 101.3 | 103.6 |
| Apr 2019 | 101.4 | 98 | 104.6 | 111.1 | 102.1 | 113.3 | 102.6 | 104.1 |
| May 2019 | 101.3 | 98.2 | 105.2 | 111.4 | 102.5 | 113.8 | 101 | 104.5 |
| Jun 2019 | 101.5 | 97.8 | 106.1 | 112 | 102 | 112.8 | 102.6 | 105.3 |
| Jul 2019 | 101.3 | 97.7 | 105.7 | 112.4 | 102.4 | 112.8 | 103.4 | 105.3 |
| Aug 2019 | 101.8 | 97.8 | 105.5 | 112.9 | 102.8 | 112.5 | 103.3 | 105.7 |
| Sep 2019 | 101.6 | 96.9 | 106 | 114.1 | 103.2 | 112.8 | 100.7 | 105.4 |
| Oct 2019 | 101.3 | 97 | 106.1 | 114.3 | 103.2 | 113.4 | 100.1 | 104.7 |
| Nov 2019 | 101.2 | 96.9 | 105.8 | 114.3 | 103.6 | 112.6 | 99.4 | 104.1 |
| Dec 2019 | 101.4 | 96.9 | 105.3 | 114.5 | 103.9 | 112.7 | 101.9 | 103.9 |
| Jan 2020 | 100.7 | 96.8 | 109.4 | 114.4 | 104.3 | 113.2 | 99.5 | 103.4 |
| Feb 2020 | 101.3 | 96.7 | 108.1 | 114.7 | 104.3 | 111.1 | 101.1 | 104.1 |
| Mar 2020 | 101.7 | 96.5 | 107.5 | 114.5 | 104.7 | 108.9 | 103.1 | 104.5 |
| Apr 2020 | 101.3 | 96.8 | 108.8 | 112.7 | 104.7 | 103.5 | 102.2 | 105.1 |
| May 2020 | 100.8 | 96.9 | 108.9 | 111.7 | 105 | 100.1 | 98.7 | 105.4 |
| Jun 2020 | 101.1 | 96.3 | 108.7 | 111.5 | 105 | 101.8 | 100.9 | 106.9 |
| Jul 2020 | 100.9 | 96.5 | 109.4 | 111.7 | 105.4 | 103 | 98.9 | 106.3 |
| Aug 2020 | 100.8 | 96.1 | 108.6 | 111.9 | 105.7 | 102.8 | 98.7 | 106.6 |
| Sep 2020 | 100.4 | 95.5 | 107 | 112 | 106.1 | 102.3 | 97.2 | 106.6 |
| Oct 2020 | 99.8 | 95.5 | 107 | 111.5 | 105.7 | 105.5 | 95.8 | 104.8 |
| Nov 2020 | 100.1 | 95.5 | 107 | 111.6 | 105.6 | 105.5 | 96.4 | 104.9 |
| Dec 2020 | 100.4 | 95.4 | 105.7 | 111.9 | 106 | 107 | 97.7 | 106.5 |
| Jan 2021 | 100.5 | 94.8 | 109.7 | 112.2 | 105.9 | 108.1 | 97.3 | 106.7 |
| Feb 2021 | 100.9 | 94.9 | 109.2 | 112.4 | 106.3 | 109.5 | 98.3 | 107.4 |
| Mar 2021 | 101.7 | 95.7 | 109.8 | 113.3 | 106.7 | 111 | 100.4 | 107.8 |
| Apr 2021 | 102.4 | 96.1 | 111.1 | 114.5 | 106.7 | 112.6 | 102 | 108.2 |
| May 2021 | 102.5 | 95.9 | 110.8 | 114.4 | 107.1 | 114.5 | 102.2 | 108.5 |
| Jun 2021 | 102.7 | 96 | 110.4 | 113.8 | 107.5 | 115 | 104 | 108.7 |
| Jul 2021 | 103.1 | 96.5 | 110.9 | 114 | 107.5 | 117.3 | 106.7 | 109.6 |
| Aug 2021 | 103.7 | 96.2 | 111.1 | 115.6 | 107.9 | 123 | 108.8 | 110.2 |
| Sep 2021 | 104.2 | 95.9 | 112.2 | 118.2 | 108.4 | 124.7 | 108.2 | 109.5 |
| Oct 2021 | 104.9 | 96.3 | 111.4 | 119.2 | 108.9 | 131.8 | 110.6 | 109.1 |
| Nov 2021 | 105.4 | 96.4 | 110.6 | 119.7 | 109 | 136.1 | 112 | 109 |
| Dec 2021 | 105.9 | 96.9 | 108.3 | 120.5 | 109.5 | 136.3 | 115.2 | 109.3 |
| Jan 2022 | 105.5 | 96.8 | 119 | 120.9 | 110 | 137.7 | 110.9 | 109.1 |
| Feb 2022 | 106.5 | 97.7 | 117.6 | 121.9 | 110.6 | 140.9 | 113.5 | 109.7 |
| Mar 2022 | 108.5 | 98.6 | 117.5 | 122.9 | 110.7 | 162.9 | 119.2 | 111.7 |
| Apr 2022 | 109.5 | 99.4 | 116.8 | 124.2 | 111.3 | 163.5 | 121.2 | 113.6 |
| May 2022 | 110.5 | 100.1 | 119.2 | 125.9 | 111.5 | 179.6 | 119.2 | 114.9 |
| Jun 2022 | 112 | 102.4 | 119.5 | 126.8 | 112 | 183.8 | 125.2 | 116.3 |
For Electricity, Gas & Other Fuels, prices increased by 15.0% in the four years between June 2017 to June 2021, followed by an increase of 59.9% in the year from June 2021 to June 2022. This means that prices for Electricity, Gas & other Fuels in June 2022 were 83.8% higher than five years earlier.
The Transport subindex saw an increase of 4.0% in the four years from June 2017 to June 2021, followed by an increase of 20.4% in the year to June 2022. The Transport subindex rose by 25.2% in the five years to June 2022.
The index for Rents increased by 13.8% in the four years from June 2017 to June 2021, and by 11.4% in the year from June 2021 to June 2022. The Rent index was 26.8% higher in June 2022 than five years earlier.
Looking at these CPI results, we can expect that household groups which spend higher than average proportions of their total expenditure on Electricity, Gas & Other Fuels and on Transport to have experienced higher inflation than the overall CPI particularly in the last 12 months. The Rents subindex between June 2017 and June 2021 would suggest that households which spend a higher than average proportion of their total expenditure on rents were experiencing higher than average inflation over that period. The results analysing these points are presented in the third chapter (Estimated Inflation by Household Characteristics).
The Household Budget Survey (HBS) provides the detailed item by item profile of expenditure used in establishing the basket of goods and services measured by the CPI. The results of the HBS can be broken down to show the spending patterns of different types of household.
| Table 1.2. Proportion of expenditure by household characteristics, Household Budget Survey 2015/16 | |||||||||
| 01. Food & Non-Alcoholic Beverages | 02. Alcoholic Beverages & Tobacco | 04.1 Rent | 04.2 Mortgage Payments | 04.5 Electricity, Gas & other Fuels | 07. Transport | 11. Restaurants & Hotels | Other | Total | |
| All Households | 12.7 | 2.5 | 6.7 | 9.0 | 5.4 | 14.2 | 7.0 | 42.5 | 100.0 |
| 1st (Lowest) Income Decile | 16.0 | 3.3 | 15.9 | 3.7 | 7.4 | 10.4 | 5.2 | 38.1 | 100.0 |
| 2nd Income Decile | 17.0 | 3.4 | 12.3 | 3.7 | 8.4 | 9.7 | 5.5 | 40.0 | 100.0 |
| 3rd Income Decile | 16.9 | 3.4 | 10.8 | 4.2 | 7.0 | 12.3 | 5.5 | 39.9 | 100.0 |
| 4th Income Decile | 15.7 | 3.4 | 10.0 | 5.7 | 6.7 | 12.8 | 5.4 | 40.3 | 100.0 |
| 5th Income Decile | 14.2 | 2.9 | 7.9 | 7.7 | 5.9 | 13.7 | 5.8 | 41.9 | 100.0 |
| 6th Income Decile | 13.6 | 2.6 | 5.4 | 7.7 | 5.5 | 15.0 | 7.2 | 43.0 | 100.0 |
| 7th Income Decile | 12.4 | 2.2 | 4.9 | 9.9 | 5.1 | 15.6 | 7.2 | 42.7 | 100.0 |
| 8th Income Decile | 11.0 | 2.1 | 4.3 | 11.1 | 4.6 | 14.5 | 7.8 | 44.6 | 100.0 |
| 9th Income Decile | 10.5 | 1.9 | 4.2 | 11.2 | 4.2 | 16.9 | 8.1 | 43.0 | 100.0 |
| 10th (Highest) Income Decile | 8.9 | 1.8 | 3.8 | 13.9 | 3.9 | 14.9 | 8.5 | 44.3 | 100.0 |
| Owned Outright | 15.3 | 2.7 | 0.1 | 0.0 | 7.0 | 17.7 | 7.5 | 49.7 | 100.0 |
| Owned with Mortgage | 11.1 | 2.1 | 0.1 | 20.0 | 4.5 | 14.0 | 6.9 | 41.3 | 100.0 |
| Rented from Local Authority | 17.4 | 5.0 | 17.9 | 0.0 | 7.5 | 9.1 | 5.9 | 37.2 | 100.0 |
| Rented from Private Owner | 11.3 | 2.5 | 28.5 | 0.0 | 4.6 | 11.1 | 6.9 | 35.1 | 100.0 |
| Urban | 12.1 | 2.7 | 8.9 | 9.3 | 5.1 | 12.7 | 7.4 | 41.8 | 100.0 |
| Rural | 14.1 | 2.0 | 1.5 | 8.5 | 6.0 | 18.1 | 6.2 | 43.6 | 100.0 |
| Reference Person aged under 35 | 10.4 | 2.2 | 19.7 | 6.4 | 4.0 | 12.4 | 7.8 | 37.1 | 100.0 |
| Reference Person aged 35 to 64 | 12.4 | 2.5 | 4.6 | 11.5 | 5.1 | 14.6 | 7.0 | 42.3 | 100.0 |
| Reference Person aged 65 or over | 16.5 | 2.7 | 2.0 | 1.0 | 8.2 | 14.9 | 6.5 | 48.2 | 100.0 |
| 1 adult | 12.0 | 2.8 | 9.7 | 6.9 | 8.1 | 13.0 | 6.8 | 40.7 | 100.0 |
| 1 adult with children | 14.0 | 3.1 | 21.2 | 5.1 | 6.7 | 8.1 | 4.2 | 37.6 | 100.0 |
| 2 adults | 12.9 | 2.9 | 6.5 | 6.4 | 5.9 | 15.4 | 8.0 | 42.0 | 100.0 |
| 2 adults with 1 to 3 children | 12.0 | 1.8 | 6.9 | 14.3 | 4.7 | 13.3 | 5.7 | 41.3 | 100.0 |
| 3 plus adults | 12.8 | 2.8 | 5.6 | 6.1 | 4.6 | 15.4 | 8.3 | 44.4 | 100.0 |
| Other households with children | 14.1 | 2.2 | 4.5 | 11.9 | 4.7 | 13.3 | 5.9 | 43.4 | 100.0 |
Results from the 2015/16 HBS on how households’ pattern of spending on goods and services differs depending on household characteristics, as shown in Table 1.2, tell us that:
The proportion of spending on Rent is higher among:
The proportion of spending on Electricity, Gas & Other Fuels is higher among:
The proportion of spending on Transport is higher among:
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