WEALTH September 10, 2026 0 Comments

Brace Yourself: The Inflation Storm That Could Shake Your Wallet and Business for Months Ahead

Ever wonder why your grocery bill feels like it’s training for a marathon every month? Well, you’re not alone. Businesses and everyday consumers across Ireland are bracing for more inflationary headwinds as energy, gas, and freight costs keep climbing. Deloitte Ireland’s chief economist, Kate English, has thrown down the gauntlet—warning that these rising costs aren’t just a blip, but a signal of tougher times ahead, especially with winter looming. Inflation ticked up to 3.7% in August, a nudge higher that echoes April’s levels, and it’s driven largely by swinging oil prices and gas rates clawing back to last year’s peaks. It’s no secret: from education services to housing and transport, prices are pushing upward, and not a single sector saw relief in the latest report. So, how long can wallets keep stretching before they snap? If you’re scratching your head wondering how to navigate these choppy economic waters, you’re in the right spot. LEARN MORE

Businesses and consumers face continued inflationary pressure in the months ahead, with energy, gas and freight costs all pointing to further challenges, according to Deloitte Ireland Chief Economist Kate English.

Her comments come as new figures from the Central Statistics Office (CSO) show that annual inflation in Ireland accelerated to 3.7% in August, up from 3.4% in the 12 months to July.

“Inflation creeped higher in August to 3.7%, back in line with April of this year,” English said.

She warned that energy prices are likely to remain a significant driver of inflation as the winter approaches.

“While oil prices had eased somewhat earlier in the summer, developments in the Gulf region have seen this trend reverse,” she said.

Oil prices have climbed back above $102 a barrel this week, while European gas prices have risen to levels last seen at the end of 2022.

English also pointed to upward pressure on freight indices, adding that the combination of rising costs “suggests that inflation will continue to be a concern for consumers and businesses for the months ahead”.

The CSO figures show that, excluding energy and unprocessed food, consumer prices increased by 2.9% in the year to August.

Education Services recorded the largest annual increase, rising 8.9%, followed by Housing, Water, Electricity, Gas & Other Fuels at 8.5% and Transport at 5.4%.

No consumer price division recorded an annual decline, marking the second consecutive month without a fall in any ECOICOP division.

On a monthly basis, consumer prices rose by 0.7% between July and August.

inflation — Kate English, chief economist for Deloitte Ireland.

Clothing and Footwear recorded the largest monthly increase, at 3.6%, followed by Transport at 3%. Recreation, Sport & Culture prices fell by 1.1%, while Insurance & Financial Services declined by 0.7%.

The latest figures come as households and businesses continue to contend with higher costs across several areas of the economy.