Half of households will buy less this year to counteract rising prices, according to a survey by Taxback.com.
While prices are going up across the board, the research shows that fuel increases are hitting Irish households the hardest.
90% of those surveyed said they are feeling the pinch of soaring home and transport fuel costs since the start of the year.
Almost 80% reported seeing increases in alcohol, tobacco and food.
"The survey suggests that spending less is by far the most popular measure people plan to take to curb the impact of rising prices," said Barry Cahill, Director at Taxback.com.
"This will have a knock-on effect on the wider economy, particularly at a time when businesses are trying to recover from the pandemic.
"A quarter of people said they will aim to save more, with one in ten believing they will seek financial assistance and/ or advice from either a friend or family, or a lender or a financial expert," he said.
Just one in ten of those surveyed said they are planning to ask for a pay rise.
Mr Cahill said small actions, such as ensuring you apply for any available tax relief and refunds can help.
"A recent survey we conducted found that more than five in ten people do not claim the tax reliefs and refunds they are owed on a yearly basis," he said.
"Our current average tax refund is €1,076, an amount that could bring a significant boost to household coffers for the sake of a small amount of effort," he added.
