Prices continue to rise as pent-up demand and pandemic-induced shortages fuel inflation.
there was an overall price increase of 1.7 percent in May, according to the latest figures from the Consumer Price Index from the Central Bureau of Statistics (CSO).
Pent-up demand after months of foreclosures has seen spending spike as hair stylists and non-essential retail businesses have been allowed to reopen.
Inflation is fueled by rising prices for commodities, like oil, and commodity shortages from the pandemic are pushing up prices for Irish buyers.
Eight energy companies in this market increased their prices this year, some of them imposing two price increases.
The rise in inflation comes as inflation in the United States approaches a 28-year high.
Irish annual inflation in May rose on higher costs for heating oil, electricity and gas and higher rents and mortgage interest payments, the CSO said.
Statisticians said that over the past year, it also recorded higher prices for alcoholic beverages and food consumed in licensed establishments, restaurants and cafes.
There has also been an increase in the cost of tobacco products and higher prices for wines and spirits sold in supermarkets and unlicensed.
Overall price increases were recorded despite lower prices for clothing and footwear due to the sales.
The costs of food and non-alcoholic beverages have fallen due to falling prices for a range of products such as meat.
The CSO said that during the year through May, prices for furnishings, household equipment and routine home maintenance fell.
This is mainly due to lower prices for non-durable household items and household textiles.
But this decrease was partially offset by an increase in the cost of major appliances.
The month of May was marked by rising gasoline and diesel prices and rising costs of cars.
This increase was partially offset by a reduction in air fares.
Auto insurance costs were down 6.5% in the month compared to last year.
It comes after insurers received a huge reduction in recommended payments for minor injuries.
But the cost of home insurance increased by 2.8 pc.
And health insurance premiums rose 2.9% over the year as all health care providers hiked their prices this year.
Meanwhile, there was a spike in spending in May when the non-essential retail business opened after months of foreclosure.
Consumers spent 10% more in May than the month before, according to the latest Bank of Ireland debit card spending analysis.
The expenses were for accommodation, transportation and retail.
Personal grooming saw a massive increase in business, with hair salons and beauty salons reopening on May 10.
Spending on social activities rose 13% in May, with data showing overall social spending is now rising just 1 pc less than before the onset of Covid-19. Restaurant spending increased 22% in May, as “meal-in-home” options continued to gain popularity.
Spending on fast food also increased by 22%, and bars saw a good level of activity despite the closure of the dining room service, with a monthly increase of 40%.