Bleak winter for consumers as they face severe price squeeze 'in months ahead'

"Food prices were the main reason for the jump in prices, with the cost of a kilogram of steak up €5 in the past year. Higher prices for meat, milk, butter, fish and pints of lager and stout sent the overall inflation rate for the year to September to 2.7pc. Inflation is up from 2pc in August, and is the highest inflation rate since March last year."

"This means someone earning €50,000 is expected to pay almost €500 extra in tax, USC and PRSI next year after the Government froze income tax bands and credits. The budget will also hit low-income people and increase income poverty levels, particularly for older people, because of the failure to provide a cost-of-living package, according to the Oireachtas-based Parliamentary Budget Office."

"Latest food price rises come at a time when Local Property Tax bills are ­going up, health insurance premiums are rising by up to €600 for families, and a string of energy companies are hiking ­prices, adding up to €250 to annual bills. Petrol and diesel prices went up on budget night due to carbon tax hikes, adding around €3 to the cost of a ­typical tank fill."

Inflation reached 2.7% in September, up from 2% in August and the highest rate since March last year, with food prices the primary driver. The cost of a kilogram of steak rose by €5 over the past year while meat, milk, butter, fish and alcohol prices all increased. The budget froze income tax bands and credits, meaning someone earning €50,000 faces almost €500 more in tax, USC and PRSI next year. Rising Local Property Tax, health insurance premiums up to €600 for families, energy company hikes adding about €250, and higher petrol and diesel due to carbon tax further squeeze household finances. An economist warned of intensifying price pressures, faster rises in meat and clothing, and energy costs picking up this winter.

Read at Irish Independent