The Irish Independent's View: Hard-pressed families need clarity on what cost-of-living measures lie ahead
The logic is that a politician is to legislate on ordinary people's lives, so the voters want down-to-earth leaders aware of their realities.
Depending on what week the question is asked, the answer can now shift such is the growth in the price of shopping basket staples like milk, cheese and butter over the past year. And besides, most people are buying milk by the litre these days.
The Central Statistics Office confirmed last week that the rate of food inflation since June of last year has been more than double that of the general rise in prices across the economy, running at 4.6pc compared to 1.8pc. Two litres of full-fat milk up by 27c in the year, a pound of butter is now up by €1.10, cheddar cheese is almost €1 dearer per kilogram and meat prices are up by more than a fifth.
Food inflation is double the rate of general inflation, with many families being forced to stump up an additional €3,000 a year due to the rise in grocery prices.
Any add-on payments won't be across the board
The Government is arguing it is acutely aware of the cost-of-living pressures on families, but inflation is expected to be lower this year than in previous years. The Coalition is trying to wean the public off cost-of-living packages that have featured in recent budgets, due to the post-Covid 19 pandemic surge in inflation and energy.
Given the economic clouds on the horizon, the Government doesn't want to see these packages being baked into public expectations. And the argument is that the energy price surge has now been becalmed.
Coincidentally, there is no general election coming immediately after the Budget this year. Taoiseach Micheál Martin has spoken about targeted measures in Budget 2026. Reforms to child benefit are being examined to give a second tier top-up payment to less well-off families and tackle child poverty. Therefore, any add-on payments won't be across the board, albeit the existing level of child benefit will remain universal.
But the Coalition has been at odds over what will happen with the €1,000 reduction in the student registration fee, which was also part of the cost-of-living package. Indications from Fianna Fáil minister James Lawless that the fee will revert to normal this year sparked a spinning row with Fine Gael.
While nobody expects the Budget to be announced in July, the Summer Economic Statement does present the Government with an opportunity to clarify its intentions around helping those still struggling with the cost of living.
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