Everyday money
Your personal inflation rate: why prices rise faster for some households
Last updated 16 October 2026
Inflation was 4.1% in the year to September 2026, but housing and energy rose far faster than food. How to work out the rate that applies to your spending.
The headline inflation figure is the change in the Consumer Price Index (CPI) from the Central Statistics Office (CSO). It tracks the price of a basket of goods and services, weighted by what households in Ireland spend on average. Prices rose by 4.1% in the year to September 2026, the highest rate since January 2024. Your own rate depends on what you buy.
What rose, and by how much
| Spending | Share of the CPI basket | 12 months to Sept 2026 |
|---|---|---|
| Food and non-alcoholic drinks | 12.3% | 0.4% |
| Alcohol and tobacco | 3.4% | 2.6% |
| Clothing and footwear | 4.9% | 3.3% |
| Housing, water, electricity, gas and other fuels | 15.4% | 9.5% |
| Furnishings and household equipment | 4.7% | 0.4% |
| Health | 5.4% | 1.8% |
| Transport | 11.2% | 7.5% |
| Information and communication | 3.4% | 1.4% |
| Recreation, sport and culture | 7.3% | 1.6% |
| Education | 1.7% | 8.9% |
| Restaurants and accommodation | 20.0% | 3.5% |
| Insurance and financial services | 4.1% | 5.2% |
| Personal care and other | 6.3% | 2.0% |
Within housing, private rents rose 4.7%, electricity 8.1% and mortgage interest 10.2%. Energy products as a whole were up 15.3%; the CSO pointed to home heating oil, petrol and diesel.
Working out your own rate
Your personal rate is the average of these price changes, weighted by your own spending. Add up roughly what share of your spending goes on each heading, multiply each share by its price change, and add the results.
Take a renter who drives to work. They spend 30% of their budget on housing and energy, 16% on transport, 16% on food and 8% on eating out. The rest is spread across other headings. Their personal inflation rate was about 5.1% over the year, compared with the 4.1% average. Someone who owns their home outright, doesn't drive and eats out often would have a lower rate.
Who is hit hardest
The CSO's own estimates for the year to June 2026, when the CPI was 3.4%, found some groups had higher rates. They were renters (3.7%), households headed by someone under 35 (3.9%) and people living alone (3.6%). Rates were lower for those who own their home outright (3.1%) and people aged 65 or over (3.2%). Over the five years to June 2026, mortgage interest rose 91.5%, energy 69.8% and rents 39.5%. Renters starting a new tenancy feel it most. The Residential Tenancies Board's index put the average new tenancy in Dublin at €2,335 a month in early 2026.
Using the number
- Compare it with your pay rise: if your pay rose less than your personal rate, your spending power fell.
- Remember tax takes part of a rise: see marginal rates.
- Update your monthly budget for the headings that rose fastest for you.
Work it out
Sources
- Residential Tenancies Board: RTB Rent Index Q1 2026 (Table 5: standardised average rent by county) (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.