Written answers
Tuesday, 29 July 2025
Department of Finance
Departmental Data
Aindrias Moynihan (Cork North-West, Fianna Fail)
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624. To ask the Minister for Finance the current level of public debt as a percentage of GDP; the way this has this changed over the past decade; the measures being taken to reduce the fiscal deficit; the projected figures for the next three years; and if he will make a statement on the matter. [40936/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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Gross General Government Debt (GGD) was 38.8 percent of GDP at the end of 2024, down from 101.3 percent of GDP in 2014. In a deeply uncertain international economic environment it is more important than ever that we maintain our public finances on a sustainable trajectory, which will be achieved by continuing a balanced and appropriate approach to budgetary policy.
My Department did not publish beyond 2026 in the latest set of projections as part of the 2025 Annual Progress Report in May this year. The projected GGD numbers were 214.5 billion euro in 2025 and 216.1 billion euro in 2026, or 65.3 and 62.5 per cent of GNI*. This was consistent with debt ratios of 37.7 and 35.9 per cent of GDP. My Department will be publishing updated projections as part of the annual budgetary process in the autumn.
Aindrias Moynihan (Cork North-West, Fianna Fail)
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625. To ask the Minister for Finance the most recent statistics on inflation in Ireland, specifically regarding essential goods and services; the way in which the current inflation rate compares to the past five years; the steps he is taking to address rising living costs; and if he will make a statement on the matter. [40937/25]
John Clendennen (Offaly, Fine Gael)
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766. To ask the Minister for Finance for an update on the current rate of food inflation; the impact of this on the cost-of-living; and if he will make a statement on the matter. [44085/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 625 and 766 together.
The annual rate of inflation, measured using the Harmonised Index of Consumer Prices (HICP) produced by the Central Statistics Office (CSO), for each year between 2020 and 2024 as well as the first half of 2025 is set out below.
Annual Rate of HICP Inflation | |
---|---|
2020 | -0.5 |
2021 | 2.4 |
2022 | 8.1 |
2023 | 5.2 |
2024 | 1.3 |
2025 (H1) | 1.7 |
In June 2025 the annual rate of inflation as measured by the HICP was 1.6 per cent. The HICP is constructed from a basket of goods and services, with the inflation rate based on the weighted average change in prices within the basket. As such, some categories of goods and services recorded rates of inflation above the headline rate, while other categories recorded rates below the average. In June, food and non-alcoholic beverages recorded an inflation rate of around 4½ per cent with this commodity group contributing almost 0.5 percentage points to the headline rate of Consumer Price Index (CPI) inflation. Prices for energy products fell by 1.8 per cent on annual basis in June.
In the same period, services related to housing recorded an annual inflation rate of 4.4 per cent, while prices for services related to transport fell by 0.9 per cent on an annual basis. A full breakdown of rates of inflation across commodity groups is published by the CSO.
Inflation has eased significantly over the last 18 months, with the annual rate of headline inflation at or below 2 per cent since March 2024. At its peak, inflation in Ireland reached a multi-decade high of close to 10 per cent in the summer of 2022, following Russia’s invasion of Ukraine, before easing across 2023 and 2024. Changes in prices during the pandemic reflect the substantial shocks to both demand and supply during this period.
Government is acutely aware of the impact of inflation on businesses and households throughout the country over recent years. Throughout the period of high inflation, Government struck the right balance providing targeted and timely supports to those households and businesses most in need while avoiding adding to inflationary pressures in the economy.
Inflation has now returned to normal levels, and given that we are currently in a period of considerable international uncertainty, it would not be appropriate to introduce a package of further one-off measures. Government set out the parameters for Budget 2026 in the Summer Economic Statement. The fiscal policy decisions that will arise from these parameters will be considered through the normal budgetary process.
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