Thursday, September 29, 2022

Inflation hit tenants and rural residents

Inflation hit tenants and rural residents

The poor and rural households are being affected the most by rising prices of petrol, household energy and food.

Research by the Central Statistics Office (CSO) has found that households that rent their homes privately and those who rent from a local authority are being hit more by inflation than those who have It’s your home.

The CSO said inflation stood at 6.7 per cent in March.

The CSO said that different households experience inflation differently depending on their spending patterns.

This is because low-income people spend a greater proportion of their income on energy and food.

Statisticians said the estimated rate of inflation in March for low-income households was 7.6 per cent, compared to an average of 6.7 per cent for all households.

Rural households experienced an inflation rate of 7 percent.

For households that rented their own home, the average inflation rate was over 7 percent for those renting from a private owner, and 7.3 percent for those renting from a local authority.

High-income households experienced an increase in prices at a rate of 6.1 percent.

Families paying the mortgage had estimated annual inflation below the average for the state.

But households that have their own house as a lump sum experienced inflation estimated at 7 percent.

Families in which the household reference person is under the age of 35 had an inflation estimate of 6.6 percent.

Where the reference person is 65 years of age or older, annual inflation was estimated to be 7.2 percent.

Above-average inflation was observed for families of one adult, one adult with children, or two adults with no children.

Senior statistician Adele Flannery said each household has its own unique consumption pattern of goods and services and therefore its own individual experience of inflation.

He said the new research paper attempts to take into account those differences between families.

“Energy costs were one of the major drivers of inflation in the 12 months to March 2022.”

Ms Flannery said transportation-related price changes accounted for more than a third of the annual increase in prices in March.

Growth in electricity, gas and domestic heating oil contributed to more than another quarter of the change.

For households with the lowest 10 percent by income, household-energy costs were the largest contributor to their projected inflation rate.

But for the top 10 percent of households by income, transportation was the biggest contributor to their higher costs.

It comes as the Taoiseach said this week that prices will continue to rise this year and the government does not yet know how much.

Michael Martin gave his most rigorous assessment of sustained inflation, after hitting a nearly 40-year record of 8.2 percent in May.

“Prices will go up. We don’t have the details of how much,” Mr Martin said after the EU summit, which focused on the energy emergency on the second day of leaders’ talks.

Officials acknowledged that restrictions on importing Russian fuel would feed higher prices in the wholesale market as countries compete for supplies from elsewhere.

Meanwhile, a survey conducted by the central bank this week found that a majority of workers believe the real value of their earnings will fall this year due to inflation.

Most respondents believe average inflation to be 10 percent, but only a third expect their incomes to keep pace with price increases.

Nation World News Desk
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