CSO data estimates that households with the lowest incomes experienced higher inflation, up to 10.3%, while those in the highest income category had annual estimated inflation of 8.2%.

The annual Consumer Price Index (CPI) inflation figure stood at 9.1% in June.

Households paying a mortgage had estimated annual inflation of 8.4% while, for households that own their home outright, inflation was estimated to be 9.3%.

Households renting their homes from private owners had an estimated inflation rate of 9.4%, versus 9.9% for those renting from a local authority.

Compared with the June CPI figure of 9.1%, the annual inflation rate was 8.8% for urban households and 9.7% for rural households. 

Higher-than-average inflation was calculated for households of one adult (10.2%), one adult with children (9.8%), or two adults without children (9.2%).

Unique consumption pattern

Statistician Joseph Keating said each household has its own unique consumption pattern of goods and services and, therefore, its own personal experience of inflation. 

Keating continued: “The official measure of inflation, as published in the CPI, shows that prices for consumer goods and services increased by 9.1% in the year to June 2022. Over the same period, the estimated annual inflation by household income categories showed a range from 8.2% for the top decile [that is, the top of ten equally divided groups] of households by income, to 10% or more per annum for households in the two lowest income deciles.”

In the 12 months to June 2022, household groups that were estimated to have experienced inflation at a higher rate than the official measure of inflation of 9.1% included:

• Lower income households, with estimated rates of inflation of up to 10.3%,
• Households renting their homes from a local authority (9.9%),
• Households renting privately (9.4%),
• Households where the dwelling is owned outright (9.3%), and
• Rural households (9.7%).

For households in the lowest decile (the lowest 10% by income): fuel was the largest contributor to their estimated inflation rate (3.3 percentage points of 10%), followed by rent (2 percentage points), and transport (1.9 percentage points).

For households in the top income decile, transport was the largest contributor to their estimated inflation (2.6 percentage points of 8.2%), followed by fuel (1.8 percentage points) and restaurants and hotels (1.5 percentage points).