Yesterday, the ESRI published a bulletin that makes for alarming reading.
They say that inflation could peak at 8.5% this summer before averaging out at 6.7% for the year. That is the highest annual rate of inflation since 1984.
This is a very serious situation for workers and families.
People are already struggling to keep their heads above water, as the cost of living crisis is putting people under huge financial pressure.
Everything is going up and up, day after day. Prices skyrocket, while pay packets remain the same.
The very basics are pushed beyond the reach of ordinary people.
From soaring petrol prices, to sky high rents, eye-watering childcare costs, grocery bills are out of control, while energy bills are leaving people in despair.
Families are now stretched to put food on the table. Money isn’t going far when it comes to the weekly shop. People are already down to the bare essentials.
Many have little left at the end of the week and they will be very worried hearing the news of another inflation rise yesterday.
But it doesn’t have to be like this.
While the ESRI has warned of massive inflation, it is also projecting strong economic growth and a budget surplus this year.
This means that the Government has elbow room in the public finances to intervene and cushion people from the worst of this crisis.
I accept that the Government can’t do everything, but they can do more.
This week, I urged the Government to engage with the EU commission to cut VAT on energy. I also urged them to remove excise from home heating oil.
A cost of living payment of €200 to individuals earning less than €30,000 and of €100 to households earning €30,000- €60,000 would also help families struggling to pay their bills in this cost of living crisis.
These are clear, common sense actions that could be taken to give workers and families the break and the breathing room they need.
But Fine Gael Finance Minister Paschal Donohoe has said that the Government has no plan to intervene with cost of living supports until October’s Budget.
Fianna Fáil’s Minister Michael McGrath doubled down on this position yesterday.
The Government is at one in their refusal to budge.
This is disgraceful. October is seven months away. People are trying to stay afloat now.
They can’t wait that long for the Government to implement measures that will get living costs down, put money back in their pockets and make a difference.
The Government can’t continue to sit on its hands while people are pushed into poverty. They have the power to act.
They must respond with speed and urgency to the extraordinary difficulties households face.
People need help urgently now.
They can’t keep waiting.
