One-third of Irish households are "just making ends meet" as the cost of living crisis shows no sign of stopping.
Consumer price inflation has left many living paycheck-to-paycheck and the public is taking a "more downbeat view" of the economy, according to figures from Bank of Ireland. The public's economic fears have been re-ignited, according to the report, by the European Union announcing a ban on most Russian oil imports to the bloc, the European Central Bank flagging an imminent tightening of monetary policy, and the UK government planning action to override much of the Northern Ireland Protocol.
Bank of Ireland's Chief Economist Dr Loretta O’Sullivan said: "Irish households have been jumpy too, with the Consumer Pulse backpedalling in June after rallying in May. Looming interest rate hikes mean higher mortgage bills for some households and contributed to some slippage in the Housing Pulse this month."
Read more: Dublin house prices continuing to spike in latest report
The survey showed that the Housing Pulse lost ground for a second consecutive month in June 2022 with the index being at 110.7 - 4.9 lower than last month and down 5.6 on a year ago. And with the European Central Bank announcing that it will raise interest rates in July and again in September, the public has been cautious about house prices this month.
Dr O'Sullivan added: "But with supply continuing to lag demand, three in four expect house prices to increase over the coming year. June also saw the Business Pulse dip below its pre-pandemic level for the first time in 2022.
"This was due to an easing in the services component of the index, which has been benefitting from the lifting of the public health restrictions."
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