Energy And Food Price WatchIreland
Irish Firms Pass On Costs As Fuel And Wages Push Prices Up
A services survey shows input costs at a five-month high and selling prices rising at the fastest pace since early 2023.
In Short
- The services activity index rose to 54.3 in October from 54.1.
- Input price inflation hit a five-month high, driven by fuel, energy, wages and shortages.
- Selling prices rose at the fastest pace since February 2023.
- Hiring grew only modestly.
- Firms are less sure about the year ahead.
Irish service firms grew again in October, but costs are climbing, a survey by S&P Global for AIB shows. Input costs rose at a five-month high.
Fuel, energy, wages and supply shortages all pushed costs up. Firms passed them on: selling prices rose at the fastest pace since February 2023.
High inflation and macroeconomic uncertainty were undermining the outlook.
Activity grew for a fifth month and new business for a sixth, though more slowly than in September. Tourism-related services were among the sectors that gained. Hiring rose, but only modestly.
Confidence in the year ahead fell to a six-month low. AIB chief economist David McNamara said respondents cited high inflation and uncertainty as hurting the outlook.
What Does This Mean For Your Restaurant?
For a restaurant owner, this is the same squeeze you may feel: energy, wages and supplier prices all rising. Check supplier quotes and your menu prices before winter.
Sources
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