July 12, 2024
Business News

Kilkenny consumers hit in pocket as restaurants and pubs hike prices: CSO figures

KILKENNY consumers are being hit in the pocket as restaurants and pubs pass on VAT rate hikes to their customers, new Central Statistics Office (CSO) figures reveal.

Rising café and restaurant prices and more expensive alcohol saw the inflation rate move up last month.

And these prices are expected to keep going up following the decision to raise the VAT rate for the hospitality and services sectors in the last budget.

The annual inflation rate crept up to 0.7pc in December, compared with the same month in the previous year. Higher mortgage costs and air fares also contributed to the rise.

Restaurants and hotel prices increased primarily due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants and cafés.

These rises came ahead of the VAT rate for the hospitality sector being put back up to 13.5pc.

The tax for the sector was cut to 9pc to stimulate the tourism industry in 2012, but the measure was restored from January 1 as part of Budget 2019.

This is expected to result in even more prices rises in the months ahead, with higher costs expected for takeaway coffees, meals out, haircuts and pints due to the VAT hike.

The slight rise in the inflation rate in December was despite falls in petrol and diesel prices and hotel accommodation costs.


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