Inflation rose by 2.9 per cent in October compared to a year ago, the highest rate since March last year, with a further increase expected in November.
The October measure was an increase in pace from the 2.7 per cent recorded in September.
The Central Statistics Office said the most significant increases were seen in education, where costs increased 8.4 per cent year-on-year, fuelled by the increased cost of third-level education. Food and non-alcoholic drinks also had a significant impact, with prices rising 4.5 per cent.
Keith Butler, chief executive of financial advisors Ask Acorn, said the high cost of living was a “huge concern” for those who have retired or were preparing to do so.
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“If you have no private pension and are reliant on the State pension, any increase in the State pension is not keeping pace with inflation or likely to do so in the future,” he said.
There was only one sector that showed a decline, with furnishings, household equipment and routine household maintenance down 0.4 per cent.
Excluding the cost of energy and unprocessed food made little impact, with the overall rate of inflation dropping slightly to 2.8 per cent.
Consumers are likely feeling the impact on their wallet. A study of national average prices by the CSO showed a significant rise in the cost of some staple products.
Among the products showing price increases were cheese, with cheddar rising 80 cent, and a pound of butter up by 64 cent compared to October last year. Bread was also more expensive, climbing by 7 cent and 3 cent respectively for white and brown sliced pans.
However, potatoes fell in price, with a 2.5kg bag down 38 cent.
On a monthly basis, consumer prices were 0.5 per cent higher in October than they were the previous month. Again, education topped the list of price increases, with recreation and Culture up 1.6 per cent.
The cost of restaurants and hotels fell by 0.3 per cent compared with September, while transport also fell 0.3 per cent.
“We expect inflation will rise further in November before falling back at the end of the year,” Thomas Pugh, chief economist at RSM Ireland & UK, said. “There are a number of factors that will weigh on inflation going forward. First, global commodity prices suggest the recent surge in food priceinflationhas probably peaked. Second, a stronger euro will weigh on import prices. Finally, US tariffs will help to put downward pressure on global demand and continue to weigh on sentiment, which help to dampen inflation through weaker growth.”
