Inflation has hit its highest rate in 38 years.

Prices have risen 9.1% in the past year, according to the CSO, the largest increase since 1984.

Inflation stood at 7.8% in the last monthly report.

The heaviest increases (22.5%) were recorded in rents, mortgage interest, water, electricity, gas and other fuels.

Fuel in particular has seen the biggest rises:

• electricity (+40.9%)
• gas (+57.2%)
• liquid fuels/home heating oil (+115.4%)!!
• diesel (+50.7%)
• petrol (+43.8%)

Image: CSO

Meanwhile, transport costs are up 20.4%, while restaurants and hotels are up 7%. Alcohol and tobacco are up 8.2%.

Speaking in the Dáil, the Tánaiste Leo Varadkar said the government has to be careful in its response.

“What we have to do over the next six months to a year is get inflation down and tame inflation, not fan the flames of inflation.

“That won’t help anyone and we have to avoid that.”

Meanwhile, the Finance Minister Paschal Donohoe said the Government will address inflation in the budget.