Households 'struggling to keep pace' with rising food and energy costs, report finds

Households are struggling to keep pace with the rising costs of essential goods, particularly food and home energy, according to a new report from the Vincentian MESL Research Centre.

The report highlights that these cost pressures have placed "significant pressure" on household budgets over the past year. Lower-income families are disproportionately affected, as they spend a larger portion of their income on these necessities. The research tracked changes in the cost of a Minimum Essential Standard of Living (MESL) basket over the 12 months to March 2026.

Overall, the cost of achieving an MESL increased by an average of 3.8% in the past year, accumulating to a 23.6% rise since 2020. Food and home energy combined account for approximately one-third of the MESL expenditure. Researchers noted that these findings underscore the growing challenge for households reliant on social welfare and other fixed incomes.

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are struggling to keep pace

Home energy costs saw a substantial increase of 24.9% in the year leading up to March 2026. While natural gas prices have seen a slight decrease, other energy sources remain significantly more expensive than in 2020. Home heating oil, in particular, experienced the largest increase, rising by 72.4% in the past year in rural areas and standing 186.8% higher than in 2020.

Food costs also continued their upward trend, increasing by 2.7% over the past year. This brings the cumulative increase to around 20% higher than six years ago. The report warns of a "longer-term upward trend" in everyday grocery prices, continuing to strain household budgets.

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significant pressure