Preparing for Budget 2025: Cost of Living Package to Reflect Drop in Inflation
Minister for Public Expenditure and Reform, Paschal Donohoe, has indicated that the upcoming Budget will take into account the decrease in inflation over the past year when calculating the cost of living package. Last year’s cost of living package amounted to €2.3 billion, but with inflation now down to around 2%, adjustments will be made accordingly.
Ministers Donohoe and Chambers are set to unveil Budget 2025 on October 1st in the Dáil. Despite the decrease in inflation, prices remain high, prompting the government to prioritize addressing the cost of living, housing, and healthcare challenges. Recent data from the Central Statistics Office shows inflation has eased to 1.7% in August from a high of 9.2% in October 2022, the highest rate in nearly four decades.
While the exact amount allocated for cost of living measures is yet to be finalized, the focus on easing the burden on Irish households is evident. Stay tuned for the Budget announcement for more details on how the government plans to support citizens in these challenging economic times.