Steep rises in cost of food and construction materials last month

Barriers to reducing the cost of living and to tackling the housing crisis were evident in steep year-on-year rises in prices for food and construction materials last month, new data from the Central Statistics Office (CSO) shows.

Prices for goods in the Irish manufacturing sector overall increased 3.5 per cent in January compared with the same month the year before, although the rate of growth slowed 1 per cent compared with December.

The latest wholesale price index shows monthly factory gate prices increased 3.5 per cent in January compared with an increase of 4.5 per cent in the year to December.

On a monthly basis, prices increased by 0.1 per cent in January compared with an increase of 1.1 per cent for January 2021.

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The price index for export sales remained unchanged, while the index for home sales increased 2.3 per cent.

In the year, there was an increase of 3.3 per cent in the price index for export sales, which can be influenced by currency fluctuations, as well as an increase of 7.9 per cent in respect of the price index for home sales.

Price of fish

A more detailed breakdown of the figures shows there was a 6.5 per cent annual increase in the price of food products, with fish and fish products increasing by 21.9 per cent and dairy products soaring by 30.9 per cent.

There was also further evidence of increased costs for the construction sector, with wood and wood products climbing 24.1 per cent in price. Rubber and plastic products saw increases of 11.4 per cent, while basic metals climbed 32.3 per cent.

Recent figures from the CSO showed headline inflation in the Irish economy eased back to 5 per cent last month. It had been running at a 20-year high of 5.5 per cent in December.

The month-on-month decline, the first in 14 months, may be short-lived, however, as soaring energy prices are expected to trigger further cost of living increases in the coming months.

The drop in January inflation may also have been prompted by price cuts in post-Christmas sales and a drop in air fares, both of which are likely to reverse.