The cost of living will remain the Government’s “focus” in this year’s Budget, Simon Harris has promised. 

Inflation shot up after Russia’s invasion of Ukraine and averaged out at 8% in 2022. 

It began to slowly fall in 2023 and is forecast to drop further to 1.9% this year. 

Despite this, the Taoiseach said he is aware that “people are still hurting” and pledged to keep this in mind during budget negotiations.  

“Cost of living increases have left [people] feeling that their personal finances are somewhat insecure and, indeed, a real worry that they might not withstand any further shocks,” Mr Harris said. 

“Therefore, I believe that recognising the existence of cost of living pressures must once again be the focus as we plan for the next budget, building on previous measures over the last number of years.” 

Simon Harris in the Newstalk studio. Image: Newstalk

Out on the streets of Dublin, a lot of people were keen to talk about how difficult it is to get by in the current economic climate. 

“Today I had to dip into my savings,” one woman in Dublin told Newstalk.

“My savings actually consisted of €20, so now I’m down to my last €6 I would say and that was for lunch. 

“I would say we’re very much still in a cost of living crisis. 

“A lot of people are living paycheck to paycheck, rent is getting higher, everything is increasing and even though the minimum wage has gone up, you’re just on par with what it was before. 

“So, I don’t really think I’ve seen any improvement.” 

A Revolut debit card is seen with an ATM in the background in November 2019. Picture by: Piotr Adamowicz / Alamy Stock Photo

One man said he felt the cost of living crisis was far from over. 

“Being a student, it’s well documented how we get affected by this kind of thing,” he said. 

“I’m on placement in Dublin at the moment and I’m living with my uncle and I went through three years of college living with my Grandad. 

“If I didn’t have that availability there, I don’t know if I’d be able to see out the three and a bit years of college.” 

Speaking on The Hard Shoulder, DCU Economics Professor Edgar Morgenroth said wages have yet to catch up with the galloping inflation of the past two years and so so “on average people are worse off”. 

“There are some sectors, some groups in the economy that seem to have higher wage increases but most definitely down relative to inflation,” he said. 

“So, yes people are in real terms worse off than they were.”

Professor Morgenroth said the poorest in society always suffer “much much more” when inflation is high and urged the Government to consider this when drawing up budget measures. 

“If we are going to support people, I would argue that we should support those that are actually most affected and that would be those on lower incomes,” he said.

Main image: A pensioner holding euro coins in his hands. Picture by: Weyo / Alamy Stock Photo