Consumer goods reach peak 1980s inflation levels as cost of living crisis deepens

The cost of living crisis was underlined by the latest Consumer Price Index (CPI) figures which showed the largest increase in the cost of goods in almost 40 years as the cost of energy and electricity soars. 

Prices rose by 7.8% in the year to May 2022, the largest increase in almost 38 years.

The rise in costs are in areas which will be most felt by consumers as transport, housing, electricity, gas and other fuels all all went up. 

The price of alcohol and clothing was also up. 

The jump in costs shown by the index published by the CSO is the largest since 1984, when there was a severe economic recession. 

The CPI rose by 7.8% in the year to May 2022, up from an annual increase of 7.0% in the year to April 2022

This is the largest annual increase in the CPI since Quarter 3 in 1984 when annual inflation was 7.9%

The divisions with the largest increases in the year to May 2022 were Housing, Water, Electricity, Gas & Other Fuels (+20.9%) and Transport (+16.5%)

Miscellaneous Goods & Services (-1.8%) and Education (-0.8%) were the only divisions to show a decrease when compared with May 2021

Consumer prices rose by 0.9% in the month between April 2022 and May 2022

The divisions with the largest increases in the month were Housing, Water, Electricity, Gas & Other Fuels (+3.7%), Alcoholic Beverages & Tobacco (+2.0%), Clothing & Footwear (+1.7%) and Restaurants & Hotels (+1.1%) while the largest decrease in the month was in Transport (-1.7%).

Commenting on annual changes shown in the release, Colin Cotter, Statistician in the Prices Division, said: “The latest publication for the Consumer Price Index shows that prices for consumer goods and services in May 2022 increased by 7.8% on average compared to May 2021. This follows an increase of 7.0% in the year to April 2022. Prices have been rising on an annual basis since April 2021, with an annual inflation of 5.0% or more recorded each month since October 2021.

"The annual increase in the CPI to May 2022 is the largest observed in almost 38 years, when annual inflation stood at 7.9% in Q3 1984," he said.