Inflation in the Irish economy reached an 18 month high in September, with Irish consumers seeing a surge in food prices. It’s the highest level of inflation seen in the Republic since March 2024, when food prices rose by 2.9 per cent. Consumer prices were 2.7 per cent higher last month than in September 2024, according to new figures.
According to CSO figures, food prices are predominantly to blame for the surge, with the cost of a kilogram of steak up €5 in the past year. The CSO’s Consumer Price Index indicates that there has been a rise of 4.7% in food and drink prices, with dairy products being the main driver of Ireland’s inflation increase.
Meat, milk, butter, fish and pints of stout and lager were all up, pushing the inflation rate for the year to September to 2.7 per cent. Inflation also increased by 2 per cent in August, and we are now seeing the highest rate of inflation since March last year.
“This is the highest that inflation has been since March 2024, when the rate of inflation was +2.9%,” said CSO statistician Anthony Dawson.
The most significant increases in the year to September 2025 were seen in food and non-alcoholic beverages (up 4.7 per cent) and miscellaneous goods and services (up 3.7 per cent), reflecting higher prices for products including milk and beef.
The average price of a sliced white pan increased by 5c to €1.66 in the year to September 2025, while the price of two litres of milk averaged €2.47 – 27 cent more than the previous year. The index further shows that the cost of one pound of butter rose by 68c to €4.81. The national average price for two litres of full-fat milk was up 27c in the year, and butter per pound rose by 68c. Irish cheddar per kilogram also increased in price by 69c.
Roast beef (topside or rib) has also gone up in price per kilogram by €3.10 in the past year, and now costs €15.91 on average.
Consumers are now paying 1c more for a take-home 50cl can of lager, which costs €2.43, while a 50cl can of cider now costs 6c more, at €2.73. The price of a pint of Guinness was up 25c in the past year, now costing more than €6, according to the CSO, while a pint of lager in a pub now averages €6.50 across the country.
The cost of sirloin steak is now unaffordable for many, reaching €22 per kilogram – a rise of 29 per cent on a year ago. It comes as health, home and motor insurance costs also keep rising. It comes as the cost of childcare increased year-on-year for the first time in three years in September, with a rise of 3.9 per cent being the fastest seen since September 2009.
According to the charity St Vincent De Paul, consistent poverty has increased from 3.6% to 5%, with an even higher increase for children, jumping from 4.8% to 8.5% in just one year.
There are over 45,000 more children now living in consistent poverty, according to the charity’s latest survey.
“These are not abstract statistics – they represent children growing up in cold bedrooms, going to school hungry, and missing out on the social and educational experiences that are fundamental to a healthy childhood,” Rose McGowan, SVP National President, said ahead of Budget 2026.
Louise Bayliss, SVP Head of Social Policy, commented: “The temporary, one-off cost-of-living payments from the government provided critical short-term relief in recent years. However, with these supports now withdrawn, low-income households are left exposed to high living costs and growing financial insecurity. Poverty in a wealthy country like Ireland is a policy failure but our next budget offers a vital opportunity to put financial certainty and dignity at the heart of Government decision-making.
“Rising poverty and homelessness rates should not be happening in a wealthy country with a growing economy, Budget 2026 can and should make a difference to the people we support.”
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