Fuel crisis and global conflict sees squeezed middle in Galway pay a heavy price
Middle-income households are facing an intensifying cost-of-living squeeze, as rising global energy prices are set to drive a further wave of inflation across food, transport and everyday essentials.
That’s according to Roscommon Galway TD and former Irish Medical Organisation President, Martin Daly, who was reacting to the latest economic analysis and CSO data.
Dr Daly said that while inflation stood at 2.7% in recent official figures, there is now clear evidence that price pressures are building again.
“Recent analysis indicates that inflation could rise to between 3.5% and 4% in the coming period, driven primarily by sharp increases in energy costs,” he said.
“We are seeing significant rises in petrol and diesel, alongside very substantial increases in home heating oil, and these costs feed directly into the wider economy. This is not a contained issue.
“When energy prices rise, they affect everything, from transport and production to food prices and household bills.”
Dr Daly said the situation is being driven by instability in global energy markets linked to the conflict in the Middle East and disruption to key supply routes.
“The disruption to global oil and gas supply is already creating volatility, and there is a high degree of uncertainty about how this will develop. Sustained increases in energy costs will translate into higher inflation and reduced spending power for households,” he said.
He said that the findings from his ‘Everyday Reality’ survey across Roscommon/Galway demonstrated the scale of the issue.
“Of almost 200 respondents, over 71% said the cost of living is now much worse than five years ago. Over 83% identified food and grocery costs as the biggest pressure, 76% pointed to energy costs, and more than half cited transport,” he said.
“Crucially, 67% said they have had to cut back on essential spending in the past six months, and more than half said their income is not keeping pace with the cost of living. That is a very clear indication of financial strain. People are not cutting back on luxuries, they are cutting back on the basics.”
Dr Daly also pointed to the broader social impact reflected in the survey.
“People are reporting reduced disposable income, increased stress, and an inability to plan for the future,” he said.
“Housing costs, in particular, continue to dominate, with more than one in four households nationally experiencing housing as a heavy financial burden.”
Dr Daly said rural households are particularly exposed.
“In rural communities, transport is essential, energy costs are higher, and alternatives are limited,” he said.
“That means households are more vulnerable to increases and less able to absorb further shocks.”