Inf lation nation... a third of us feel poorer now than a year ago

OVER a third of us feel poorer than we were a year ago, a study shows.

The dire finances of thousands sparked by a surge in inflation has led families to shop around for better deals, with over half – 54% – planning to do so.

More than four in ten intend to eat out less, with 38% planning to buy fewer clothes and a third intending to use home heating less. Almost nine in ten – 88% – people are planning to take cost-cutting measures to slash their spending this year, the research from Aviva Insurance found.

The worrying figure comes as more than a third – 35% – report to being in a weaker financial position now than they were a year ago.

The research also revealed that age was found to have a considerable sway as to how upbeat an individual is about

‘A little more out of pocket’

their finances. Those aged between 25-34 were most likely to say they are in a stronger financial position now than a year ago, with more than half – 52% – saying so. However, those aged 45-54 are most likely to feel they are in a weaker financial position at 39%, while those over 55 are most inclined to say their position is the same (42%).

Aviva’s Julie Frazer said: ‘The findings of the survey show the impact of two years of record high inflation on household purses.

‘While Irish inflation has started to fall below the 5% mark since September 2023, prior to that it had remained stubbornly and often significantly higher for two years.

‘Given that more than one third of our survey respondents feel they are in a weaker position than last year, it’s evident that we need general inflation to continue falling for some time yet before families can feel less financially squeezed and a little more confident about their finances.’

The Aviva survey also found that although the majority of respondents – 65% – are in the same if not better financial situation than they were 12 months ago, almost all are still planning to make some changes to their consumption and spending habits to cut household expenditure.’

Ms Frazer added: ‘It’s not just those who feel they are a little more out of pocket this year that are going to try to claw back some money. The research provides a good insight into how people believe they will save... For example, while the number of overseas holidays trips taken by Irish people has steadily increased in recent years despite the cost-of-living crisis, there is now evidence that the recent price squeeze is starting to have an impact on holiday plans with one in three (31%) saying they will go on a cheaper holiday or won’t holiday at all this year.’