Irish consumers are braced for a more costly Christmas after new Central Statistics Office (CSO) figures revealed that groceries, fuel, electricity and even non-alcoholic drinks are all rising in price.
Figures from the CSO’s latest report show that inflation has hit an 18-month high. Overall consumer prices shot up by 2.9 per cent in the 12 months to October, with food prices continuing to rise as the countdown to Christmas begins.
It comes as a survey from KPMG found that a majority of people plan on giving smaller gifts this year – with one in five telling the Next Gen Retail Survey that they plan on using credit facilities to help pay for Christmas. 77 per cent said that they anticipate Christmas to be “far more expensive” than last year, with some 40 per cent of those surveyed planning to spend less than last year.
The CSO report shows that restaurants and hotel prices rose, while the cost of food and non-alcoholic drinks were up. Items including chocolate, confectionery, breads, cereals, cheese and eggs have all shot up in price, the consumer price index (CPI) from October details.
The sector where the largest cost increases were seen over 12 months was education – where costs surged by 8.4 per cent, reflecting higher third-level education costs. Food and non-alcoholic drink costs were up 4.5 per cent on last year.
The cost of household staples continues to rise, with the CSO noting that there were price increases in the 12 months to October 2025 for Irish cheddar per kg (+80c), a pound of butter (+64c), 2 litres of full fat milk (+22c), an 800g loaf of white sliced pan (+7c), an 800g loaf of brown sliced pan (+3c), and spaghetti per 500g (+1c).
There was a decrease in the price of a 2.5kg bag of potatoes (-38c) when compared with October 2024.
The national average price of a take-home 50cl can of lager at €2.42 was up 1 cent from October 2024, while a take-home 50cl can of cider at €2.71 was up 3 cents.
In October 2025, the national average price of a pint of stout in licensed premises was €6.07, up 25 cents in the year, while a pint of lager was €6.50, also up 25 cents compared with October 2024.
Commenting on the National Average Prices, Anthony Dawson of the CSO said:
“Today’s release of the CPI shows that prices for consumer goods and services in October 2025 rose by 2.9% on average when compared with October 2024. This is the highest rate of inflation since March 2024 when it was also +2.9%.
Breaking down annual changes, the CSO said that costs relating to restaurants and hotels rose mainly due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes. This increase was partially offset by a reduction in the cost of hotel accommodation, it said.
Food and non-alcoholic beverages increased due to higher prices across a range of products such as meat, milk, cheese and eggs, chocolate and confectionery and breads and cereals.
Housing, Water, Electricity, Gas and Other Fuels rose mainly due to a rise in the cost of rents, electricity, gas and mortgage interest repayments.
Miscellaneous Goods & Services increased primarily due to higher health and motor insurance premiums and an increase in the cost of articles and products for personal care. This increase was partially offset by lower prices for jewellery, clocks and watches.