The upward spiral of fuel, petrol and food prices seems to be continuing unabated. KBC Bank economist Austin Hughes predicts that inflation will be higher in March, and could even increase further in April despite the Government payment of €200 to households to cope with surging electricity bills.
Hughes anticipates that the spill-over impact of runaway energy costs will have a bigger impact on food prices, transport and other goods and services. The winter of discontent will be followed by a spring of sustained price pain,” he says.
In light of this, the economist called for a mini-Budget to increase social welfare, further cut the state’s take on petrol and diesel, and link income tax credits to inflation.
Prices jumped by 5.6pc in February when compared with the same month in 2021, according to the Central Statistics Office (CSO). This marks the largest annual increase in the consumer price index in almost 21 years.
Prices were up almost 1pc between January and February, putting severe pressure on household budgets. Diesel was up 32.5pc in February, compared with the same month a year ago, with petrol up 30.3pc. The cost of motor fuel has also risen again. The CSO says airfares were 42.3% dearer in February, when compared with the same month in 2021.
Ultimately it seems that inflation will get even higher in the months ahead.
LSL News.