Most of the recent increases in the minimum wage had no impact on inflation, report finds

A report from the Economic and Social Research Institute (ESRI) indicates that the majority of minimum wage increases in Ireland since 2016 have not resulted in significant inflationary pressure. Analysis of eight separate wage hikes during this period shows that prices remained stable in seven instances following the adjustments.

However, the most recent increase in January 2024, which raised the hourly rate from €11.30 to €12.70, did correlate with modest price rises in specific service-oriented sectors. These inflationary effects were primarily observed in industries such as hairdressing and takeaway food preparation.