Property prices surge 11pc, with overall prices increases hitting a 13-year high

THE cost-of-living crisis has intensified with general prices surging at a rate not seen for more than a decade and property values increasing at double-digit rates.

Property prices were up 11pc in the year to August, the fastest rate of increase in three years.

And general prices are rising at a rate of 3.7pc, pushed up by energy, fuel and rent hikes.

This is the largest annual change in prices since October 2008 when prices rose by 4pc.

The new figures come after the Budget attempted to put more money in people’s pockets to cope with rocketing prices.

Consumer prices in August increased by 0.5pc in the month.

This is the 11th month in succession that prices have increased when compared to the previous month.

This is the longest consecutive sequence of monthly inflation since 2007, the CSO said.

Senior statistician Barra Casey said: “The most significant increase in the year could be seen in transport, which was up 11.4pc.

“This increase was mainly caused by higher prices for diesel, petrol and motor cars, an increase in airfares and a rise in the cost of services in respect of personal transport equipment.”

There were also price rises for rents, and for alcohol and food consumed in pubs, restaurants and cafes.

The surge in property values and general prices continues the trend of accelerating price growth that first emerged at the end of 2020 and has continued throughout 2021.

Pandemic-related shortages and transport constraints, combined with demand heading back to normal, are sending prices shooting up.

The CSO said residential property prices increased by 10.9pc nationally in the year to August.

Half of this growth came in the latest three months.

It is the largest annual change in prices since June 2018.

It compares to an increase of 8.5pc in the year to July, but property price rises are now back to double-digit rises.

As recently as August 2020 prices actually fell by almost 1pc.

Dublin prices were up by 10.2pc in the year to this August, with prices outside Dublin rising by 11.5pc.

There was a jump in transactions in August with households purchasing 3,764 dwellings, an increase of 60pc compared with August 2020.

The median, or typical, price paid for a property nationwide is now €270,000.

The Dublin region had the highest median price at €399,999.

Within the Dublin region, Dún Laoghaire-Rathdown had the highest median price at €562,000, while South Dublin had the lowest at €366,875.

The lowest price nationwide price was €124,900 in Leitrim.

Meanwhile, the pressure on household energy bills continues with Bright Energy announcing a 16pc rise in electricity prices from November 6 next.

This will add €207 to a typical bill. There have been more than 30 different energy price rise announcements this year, with costs expected to rise by around €500 for an average home.

Reporting: The Irish Independent