Thursday, July 14, 2022

Sarah Mooney

Inflation hit Irish wallets in June as overall spend increased despite a fall in transactions, according to AIB.

The bank said consumer spending during the month rose four per cent compared to May, despite consumers making nearly 500,000 fewer transactions – indicating that inflation is influencing Irish purchasing decisions.

This trend was most noticeable in the food sectors, with the average transaction rising by 47 cents in pubs and off-licences, 45 cents in restaurants and 16 cents in grocery stores. All of these food sectors saw an increase in spend and a fall in number of transactions in June.

Hotels saw the largest month-to-month growth with spend increasing by 11 per cent, and the average transaction in the sector rose from €85.87 to €90.16.

AIB Head of SME Banking, John Brennan, said: “During June, consumers made fewer transactions, but those transactions were, on average, for larger amounts. This is an indicator that inflation is starting to impact Irish purchases and consumer behaviour.

“The food industry is particularly affected when it comes to changes in their supply chain costs, such as the price of petrol, fertiliser and feed for livestock.”

Overall, consumers spent almost €87 million a day throughout the month, with digital wallet payments up 10 per cent as the cashless payment technology becomes “increasingly popular”.

Mr Brennan said the public “are now spending over €12 million a day by tapping their phones and watches. This is equivalent to nearly one in every seven euro during the month being spent via a digital wallet.”

The AIB data was compiled from over one million card transactions by Irish consumers during June 2022.

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