The cost of living in Ireland has spiralled out of control. Whether it’s paying rent or buying groceries, households across the country are feeling the squeeze. But what’s driving this crisis? Rising prices, stagnating wages, and policies shaped by wealth inequality have combined to create a system that benefits a few while leaving the majority behind.
This article breaks down the real impact of inflation on everyday life in Ireland and explores what must be done to build an economy that works for everyone—because simply coping isn’t enough anymore.
Inflation and a Broken System
It’s easy to blame inflation for rising costs, but let’s dig deeper into what’s really happening. The headline inflation rate in Ireland stands at 4.2%, but it hides staggering increases in essential categories:
- Food prices have risen by 7.5%, making the weekly shop an increasing burden for families.
- Energy costs are still up 12% compared to pre-pandemic levels, even as energy corporations report record profits.
For households, these figures aren’t just abstract percentages—they’re the reality of struggling to make ends meet every single month.
The Pressure on Household Budgets
Irish households are now spending €120 more per month on essentials like food, housing, and electricity compared to 2021. Yet wages have barely increased, meaning that families are losing money in real terms. It’s not just inflation; it’s the result of a deeply flawed economic system where wealth and resources are concentrated at the top.
For many workers, rent and housing alone leave little to pay for groceries or utilities. Families face impossible trade-offs, like whether to heat their homes or put food on the table—a dilemma no one should face in modern Ireland.
Who’s Hit the Hardest?
The cost-of-living crisis hasn’t affected everyone equally. Unsurprisingly, it’s the most vulnerable who’ve been impacted the hardest:
- Single-parent households: With only one income to rely on, these families often lack the financial stability to absorb rising costs.
- Pensioners on fixed incomes: Retirees face shrinking purchasing power as essentials like utilities and food eat up a disproportionate share of their limited funds.
- Young renters and workers: For those in rented accommodation, rising rents combined with stagnant wages make saving for a home or their future almost impossible.
We’re seeing the bitter reality of an unequal economic system: those who were already struggling are being pushed into crisis, while the wealthiest are insulated by their assets and low-tax benefits.
Temporary Government Measures Aren’t Enough
The Irish government’s response to the crisis has included energy credits and other temporary support measures to help households cope with rising bills. While these steps have provided short-term relief, they fail to address the structural inequalities at the heart of the crisis:
- The dominance of landlords and institutional investors in the housing market, driving up rent and house prices.
- Wealth hoarding among the richest, who rarely contribute their fair share through taxation.
- A lack of competition in key sectors like utilities and food, allowing monopolies to set unreasonably high prices.
Real change demands fairer wealth redistribution, stronger tenant protections, and policies that prioritise ordinary citizens instead of corporate profits.
Coping Isn’t a Solution
Irish families are creatively navigating the crisis, with many turning to:
- Conserving energy by turning down the heat or minimising electricity use.
- Bulk buying groceries to save on rising food costs.
- Relying on public transport over private cars to cut fuel expenses.
But while these strategies might help families scrape by, they aren’t sustainable long-term solutions. No amount of household penny-pinching can fix a system that’s fundamentally rigged against ordinary people.
What Needs to Change?
The cost-of-living crisis exposes how broken Ireland’s economy really is—this isn’t just about inflation; it’s about policies that favour the wealthy over everyone else. Here’s what needs to happen:
-
Increase Wages to Match Inflation
Workers need pay rises that keep up with the soaring cost of living. Leaving wages behind while increasing housing and food costs only deepens inequality. -
Tax the Wealthy Fairly
Introduce higher taxes on large property portfolios and capital gains to redistribute wealth and fund public services. -
Stronger Housing Regulations
End unchecked rent increases and control investor dominance in the housing market. Renters deserve stability and affordability. -
Invest in Renewable Energy
Reduce dependence on expensive oil and gas by investing in sustainable energy, cutting both household bills and corporate influence over energy markets.
Final Thoughts: We Deserve More
The cost-of-living crisis isn’t just a temporary phenomenon—it’s a symptom of deeper problems rooted in inequality. Irish families aren’t struggling because they’re not trying hard enough—they’re struggling because the system prioritises profits over people.
But here’s the truth: the economy doesn’t have to be this way. Change is possible if we demand it, whether through fair tax policies, stronger protections for renters, or investments in public infrastructure. Ireland needs an economy where everyone can thrive, not just survive.
Let’s stop coping and start fixing.