Ireland report says rising food and energy costs are putting pressure on household budgets

A new report in Ireland says rising food and home energy costs are continuing to put significant pressure on household budgets, with lower-income families among those most affected. The research says many households are struggling to keep pace with the cost of essential goods and services. It also says the burden is especially heavy for people dependent on social welfare and other fixed incomes.

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The latest Minimum Essential Standard of Living report from the Vincentian MESL Research Centre examined changes in the cost of the MESL basket in the 12 months to March 2026 and tracked cumulative changes since 2020. It found that the cost of achieving a Minimum Essential Standard of Living rose by an average of 3.8% over the past year and by 23.6% since 2020. The report said home energy and food together accounted for about one-third of the MESL expenditure basket.

Researchers said home energy costs increased by 24.9% in the year to March 2026 and have more than doubled since 2020. Food costs rose by 2.7% over the same period and are now around 20% higher than six years ago. The report said the longer-term upward trend in grocery prices continues to push up the cost of everyday living.

It also said single-adult households with older children dependent on social welfare face the greatest risk of deep income inadequacy. The findings matter because the MESL framework is designed to measure the income needed for an acceptable standard of living, rather than simply tracking inflation in general terms. That makes the report a useful indicator of how price rises are affecting different household types in practice.

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It also highlights the pressure on families whose incomes do not rise at the same pace as essential costs. The report said rural households have been hit particularly hard by heating oil prices, which rose by 72.4% in the past year and are now 186.8% higher than in 2020. In urban areas, natural gas prices fell by 3% over the year but remained 84% above 2020 levels.

Electricity costs also increased by 25.6% over the past year and by 77.7% since 2020, adding to the overall cost of keeping homes warm and functioning. What remains unclear from the report is how quickly these pressures may ease, or whether further support will be introduced for households most exposed to rising costs. The research suggests the challenge is likely to remain acute for people on fixed incomes, especially where food and energy take up a large share of spending.

The next point to watch is whether the findings prompt any policy response on income adequacy or cost-of-living support.

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