Six out of 10 Irish consumers currently have no money left at the end of the month as the cost-of-living crisis weighs on the finances of households globally, according to a new Deloitte survey.
The Deloitte state-of-the-consumer tracker for November found that 55 per cent of about 1,000 people in Ireland that participated in the survey said they feel their financial situation has worsened in the past year.
Irish consumers were the second most concerned about rising costs among 24 countries assessed. Some 78 per cent of those surveyed said they are concerned about inflation, just behind the UK and the Netherlands, each at 79 per cent. The least concerned countries were China, at 37 per cent, and Saudi Arabia, at 49 per cent.
“Inflation concerns have been widespread among Irish consumers for well over a year, and with the prolonged situation taking its toll on spending decisions, many are adopting more recessionary behaviours,” said Daniel Murray, partner and head of consumer at Deloitte Ireland.
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“This is a pattern in the majority of the 24 countries in which Deloitte spoke to consumers but particularly the case with Irish consumers. 54 per cent of Irish consumers intend to delay large purchases and only 36 per cent said they can now afford to spend on things that bring them joy.”
The results come as households prepare for final week of shopping before Christmas. A recent spending report from the Competition and Consumer Protection Commission (CCPC) suggests that 59 per cent of Irish households will spend at least €500 on Christmas-related purchases, while 30 per cent are planning to spend €1,000 or more, driven by presents for children.
Inflation in the Republic was running at an estimated 9 per cent in the 12 months to the end of November, according to Eurostat, the EU statistics office. Energy price inflation was running at an annual rate of 43 per cent in November.
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Meanwhile, Ibec has called on the Government to strengthen business supports after a new research shows the full scale of Ireland’s energy affordability crisis. The survey of Ibec members shows that average gas and electricity prices increased by 90 per cent and 60 per cent respectively in 2022, with further increases expected next year.
“Businesses are forecasting gas prices to be three times higher in 2023 than last year and electricity costs 2.5 times higher. While wholesale gas prices have fallen from the exceptional heights we saw in August, the market remains volatile and prices still remain well above normal levels,” said Conor Minogue, Ibec’s senior executive for infrastructure, energy and climate policy
He said that while the Temporary Business Energy Support Scheme (TBESS) and Ukraine Enterprise Crisis Scheme (UECS) announced in Budget 2023 were providing welcome support to many businesses, the eligibility criteria and support levels “remain too restrictive”.
