Inflation in the Irish economy fell below 8 per cent in March, raising hopes that the current spike in prices may have peaked.
According to the Consumer Price Index compiled by the Central Statistics Office, prices are estimated to have risen by 7.7 per cent in the 12 months to March this year.
This was down from an annual growth rate of 8.5 per cent in February.
Household costs were the main contributors to the increase with the cost of mortgage interest up 35 per cent while electricity, gas and other fuels rose by over 32 per cent.
Food prices were also up over the last 12 months with whole milk up 24 per cent, butter up 21 per cent, and bread up over 15 per cent when compared with this time last year.
Commenting on the inflation rate, Paul Walsh, chief executive of Peopl Insurance, said the financial resilience of Irish households was being tested to the limit.
"This is the 18th straight month where the annual increase in the CPI has been at least 5 per cent. Ireland’s households are really vulnerable to these increased demands on their finances.
"Many people simply do not have any financial cushioning to fall back on and, with families expected to pay upwards of €1,000 on their grocery bill this year due to the soaring costs of household staples, the number of people facing financial difficulty will continue to grow.
"Almost everything on the supermarket shelves has shot up in price. Rising living costs are stretching households beyond their limit."
