Figures from the Central Statistics Office (CSO) have shown that the standard of living for Irish households has declined in three of the last four quarters.
The figures showed that three of the last four quarters saw a decline in the standard of living for households. Average household income is down 0.8% between July and September when adjusted for inflation.
According to the statistics body, while household earnings are actually up as the economy has re-opened and people have gone back to work, inflation has exceeded the earnings, meaning that people’s income is lower in reality.
In addition to this, the same data found that household savings declined in the third quarter of the year.
In April, May and June of this year, households on average saved 20% of their income. However, in July, August and September, this figured dropped to 19%.
However, this is still far above pre-pandemic levels, where household savings averaged around 10% of income.
This may indicate a change in spending habits post-Covid, and that people are spending money less.
Peter Culhane, a statistician with the CSO, spoke on the findings.
“Current price income has been rising steadily as more people are in work and the average wage is going up,” he said.
“However, real income has declined in three of the last four quarters as price increases have outpaced incomes.”
Regarding the drop in savings, Culhane explained that this is part of a trend seen since the Covid-19 pandemic.
“The saving level remains above its pre-Covid-19 level of around 10% as some of the savings habits developed during the restrictions are maintained,” he said.
“Households have generally decided not to spend their savings, but to continue to add to their assets and reduce their borrowing.”