Inflation was higher for lower income households, latest CSO figures show

Inflation hit those on lower incomes hardest, latest figures from the Central Statistics Office (CSO) show. 

New estimated inflation rates to September 2022 show lower income households experienced inflation rates of up to 9.5% compared with 7.5% for highest income households

Compared with the annual Consumer Price Index (CPI) inflation figure of 8.2% in September 2022, a new breakdown by the CSO estimates that households with the lowest incomes experienced higher inflation, up to 9.5%, while those in the highest income category had annual estimated inflation of 7.5%

Households paying a mortgage had estimated annual inflation of 7.8% while for households that own their home outright, inflation was estimated to be 8.4%.

Households that rent their home from a private owner had an estimated inflation rate of 8.3%, versus 9.1% for those renting from a local authority.

Compared with the September 2022 CPI figure of 8.2%, the annual inflation rate was 8.1% for urban households and 8.7% for rural households.

Households where the household reference person was aged under 35 and households where the reference person was aged 35 to 64 years had estimated inflation rates of 8.0% while annual inflation was estimated to be 9.0% where the reference person was aged 65 or over.

Higher than average inflation was calculated for households of one adult (9.2%), one adult with children (9.1%), and two adults without children (8.4%).

Commenting on the information presented in this CSO Frontier Series research paper, Joseph Keating, statistician in the prices division, said: "The increasing rate of inflation since the middle of 2021 has prompted greater interest in price change and its effects on households. The Consumer Price Index (CPI) is a measure of average inflation for all households.

"However, each household has its own unique consumption pattern of goods and services and therefore its own personal experience of inflation. This latest research paper published by the CSO today attempts to take account of those differences between households and provides an estimated breakdown of the CPI results by household characteristics up to September 2022. This has been calculated by combining the CPI results with more detailed expenditure data from the 2015/16 Household Budget Survey.

"The report presents estimates of inflation classified by household income, composition of the household, housing tenure, age of the household reference person, and whether the household is in an urban or rural setting," Mr Keating said.