Irish News - Rising Cost of Living: Households Struggle as Prices Soar Across Essential Goods and Services

According to the CSO's flash estimate, the Harmonised Index of Consumer Prices (HICP) rose 1.3% year-on-year in February, down slightly from 1.5% in January.

Key increases include:

Energy prices: Up 0.7% in February but down 2.5% over 12 months.
Food prices: Up 0.4% in February and 2.2% over the past year.
Transport costs: Increased 1.7% in February and 2.8% over 12 months.

Meanwhile, core inflation, which excludes energy and unprocessed food, rose 1.7% in February, compared to 2% in January.

The Eurozone inflation rate for February is expected to be published by Eurostat on Monday.

SSE Airtricity to Raise Electricity and Gas Prices from April 2

Adding to household financial concerns, SSE Airtricity has announced a price hike for electricity and gas customers, effective April 2, 2025.

Electricity bills will rise by 10.5%, adding an extra €171.22 per year.
Gas bills will increase by 8.4%, costing an additional €113.91 per year.
Dual-fuel customers will see an average increase of 9.5%, or around €0.78 per day.

The electricity unit rate will increase by 12.75%, while the gas unit rate will rise by 10.5%.

Customers on fixed tariffs will not be affected by the price changes.

Why Are Prices Increasing?

SSE Airtricity, Ireland’s third-largest energy provider, says the increases are due to rising network charges and wholesale energy costs.

Wholesale electricity prices surged 22.3% in January compared to December and were 67.7% higher than January 2024.
However, prices remain 56.8% lower than the peak in August 2022.

Despite the upcoming hikes, SSE Airtricity Managing Director Stephen Gallagher defended the company's pricing approach:

“Increasing prices is always a last resort… we have reduced electricity tariffs by 31% and gas by 28% since October 2022.”

Gallagher also noted that the company absorbed higher costs for six months, including winter, but can no longer shield customers from increased network charges.

Consumer Support and Advice

SSE Airtricity urged customers facing financial difficulties to contact them directly for potential solutions.

With inflation, energy prices, and living costs continuing to rise, many households may need to reassess budgets and seek financial assistance where available.

Irish households should not expect further cost-of-living supports or energy credits in the next budget, as Taoiseach Micheál Martin has confirmed that the Government will not roll out another cost-of-living package this year.

Despite ongoing financial pressures, Martin stated that the focus will shift towards long-term tax and social protection measures rather than one-off relief payments.

No Energy Credits or Lump Sum Payments in Budget 2026?

Over the past three years, the Government has introduced several cost-of-living supports, including:

Lump sum payments for vulnerable groups
Double social welfare and Child Benefit payments
Energy credits for all Irish households (€125 x2 in Budget 2025)
Tax relief measures

However, speaking on RTÉ Radio 1, the Taoiseach ruled out a similar package in Budget 2026, stating:

"We’re not going to have a cost-of-living package this year, that’s the Government view.
We will endeavour through the budget, through the various mechanisms we have—from social protection to tax—to help people."

While inflation has fallen, Martin confirmed that the Government will not provide energy credits this winter, but did not clarify whether lump sums and double payments would also be discontinued.

Growing Cost-of-Living Concerns Amid Rising Prices

The Taoiseach’s remarks come as households face increasing financial strain, with:

Consumer prices up 1.3% in February
Energy prices rising again, with SSE Airtricity announcing bill increases of up to 10.5% from April 2
Transport and food costs continuing to climb

With no direct cost-of-living relief expected in the upcoming budget, many households may struggle with rising expenses, particularly as winter approaches.