Ireland faces rising inflation and record energy bill arrears

Ireland is facing significant cost-of-living pressures as inflation and energy arrears reach critical levels. According to data from the Central Statistics Office, annual inflation stood at 3.4 percent in July 2026, with notable increases in educational services (8.9 percent), clothing and footwear (8.5 percent), and housing and utilities (7.7 percent).

Electricity prices have seen a sharp rise, increasing 8.1 percent year-on-year, marking the highest annual growth since late 2023. This surge has contributed to a record number of households struggling to pay utility bills. Data from the Commission for Regulation of Utilities (CRU) reveals that in May, 328,273 households were in arrears for electricity and 188,941 for gas, the highest levels recorded since 2017.

The crisis is characterized by both a higher volume of debtors and increasing debt amounts. Average electricity arrears have risen to 512.02 euros, a 65 percent increase since 2022, while gas arrears average 223.57 euros, up 45 percent. Long-term debt is also a growing concern, with approximately 8 percent of electricity customers and 20 percent of gas customers owing payments for 90 days or more.