CONSUMER PRICES IN Ireland have risen by the highest annual rates since March 2024 – with prices of basic grocery items shooting up.

The Consumer Price Index (CPI) is Ireland’s official measure of inflation.

For the CPI, around 50,000 prices are collected across a range of retail and service outlets from a basket of goods consisting 612 items.

This aims to reflect what average households are spending their money on.

Figures released today by the Central Statistics Office (CSO) show that the CPI rose by 2.9% between October 2024 and October 2025.

In the month between September 2025 and October 2025 consumer prices rose by 0.5%.

Excluding energy and unprocessed food, the CPI grew by 2.8% in the 12 months to October 2025. The largest increases were education (+8.4%) and food and non-alcoholic beverages (+4.5%).

The most significant monthly price increases were in education (+8.7%) which was due mainly to higher costs associated with third-level education.

CSO.ie CSO.ie

Between October 2024 and October 2025, there was a 80c increase in the price of a kilo of Irish cheddar cheese to hit €11.28, a 64c increase in a pound of butter to reach €4.87, and a 22c increase in a two litre carton of milk to reach €2.43.

The average cost of a white slice pan also rose by 7c to €1.68.

Positively, the average price of a 2.5kg bag of potatoes declined by 38c cent to €3.63.

The only area to record a decline when compared with October 2024 was Furnishings, Household Equipment & Routine Household Maintenance (-0.4%).

Thomas Pugh, chief economist at leading audit, tax and consulting firm RSM Ireland and RSM UK said that inflation will likely increase again this year.

“Looking ahead, we expect inflation will rise further in November before falling back at the end of the year. Fortunately, there are a number of factors that will weigh on inflation going forward.”

“First, global commodity prices suggest the recent surge in food price inflation has probably peaked. Second, a stronger euro will weigh on import prices. Finally, US tariffs will help to put downward pressure on global demand and continue to weigh on sentiment, which help to dampen inflation through weaker growth.”

Keith Butler, CEO of Ask Acorn, said retirees will particularly feel the increase in the cost of basics.

“High living costs are a huge concern for those who have already, or are soon-to-be, retired. Many of those in retirement have a set – and often small – pension to get by on so making ends meet can be a huge challenge when prices are soaring on so many fronts.”

“For those without a private pension, the situation is likely to be even more difficult. If you have no private pension and are reliant on the State pension, any increase in the State pension is not keeping pace with inflation or likely to do so in the future.”