Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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333. To ask the Minister for Finance if the high electricity prices in Ireland are having a measurable effect on disposable incomes, consumer spending, and inflation compared with the rest of the Eurozone. [48838/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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According to Eurostat, in the second half of 2024 electricity prices for consumers in Ireland averaged around €0.37 per kilowatt hour (kWh) compared to a euro area average of €0.30. Electricity costs make up almost 4 per cent of the basket of goods and services included in the Harmonised Index of Consumer Prices in Ireland. To end-July 2025, the annual rate of inflation for electricity has averaged -1.5 per cent in Ireland this year, compared to 1.3 per cent for the euro area. Overall, HICP inflation averaged 1.6 per cent over this period in Ireland, compared to 2.2 per cent in the euro area.

While it is challenging to isolate the impact of the electricity price level on disposable income and consumption, the easing of headline inflationary pressures helped support robust growth in real disposable income last year of 5 per cent. This underpinned growth of almost 3 per cent in consumption over this period, compared to 1¼ per cent in the euro area. Encouragingly, the strong momentum in consumption has continued into the first half of this year, up around 3 per cent on an annual basis.

My Department will publish updated forecasts alongside Budget 2026 next month. This will include forecasts for inflation and consumption.