Irish household wealth worth more than €1 trillion for the first time ever 5 days ago

Irish household wealth worth more than €1 trillion for the first time ever

The Central Bank were at pains to point out that the figure does not reflect the distribution of wealth in Ireland.

While the cost of living crisis continues, Irish wealth continues to grow to unprecedented heights, with the net worth of Irish households now passing the €1 trillion mark for the first time ever.

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The figure was revealed in the quarterly financial accounts published by the Central Bank on Wednesday (3 August).

The net worth of Irish households increased by €19.6 billion in the first quarter of 2022, which pushed wealth over the €1 trillion mark.

The Central Bank clarified, however, that "this growth may not reflect the underlying experiences of all households, or the distribution of wealth".

"In particular, the Covid-19 pandemic is likely to have had varying effects on the wealth of different household groups," the Central Bank commentary read.

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The primary driver of growth in wealth was the increase in value for housing assets in the country.

Household housing assets reached a high of €649bn in Q1 2022, above its previous peak of €630bn in the last quarter.

Gross household savings continued to decline for the second quarter in a row, falling by €900,000 from €8.1 billion to €7.2 billion.

The total savings, however, is still high when compared to pre-pandemic levels of €5.9 billion

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"The decline in savings was driven partly by a decline in the total disposable income of households over the quarter and an increase in consumer spending," the Central Bank wrote.

"The latter due to inflation rather than households consuming more goods and services, with final consumption after adjusting for inflation decreasing over the quarter."

The cost of living continues to be a source of controversy in Ireland, with a number of protests nationwide taking place in June.

McDonald's Ireland confirmed that it will be increasing the cost of select items on its menu, including its classic cheeseburger.

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Bord Gáis Energy has increased prices three times in the last year, including one increase on the average gas bill of €8.16 per month and a €10.26 per month increase on the typical electricity bill.

Penneys announced a price freeze on more than 1,000 kids' products in store last week in response to the ongoing crisis.

The prices are set to remain in place for the autumn period, just in time for back to school.