Total retail spending in Dublin increased by 1.6% in the second three months of the year, according to the latest MasterCard SpendingPulse, produced on behalf of the four Dublin Local Authorities.

It was the fifth consecutive quarter of growth and came despite cost of living challenges facing consumers.

The report concludes that inflationary pressures are likely to remain a major headwind for consumer spending in the coming quarters.

The latest quarterly spend was boosted by strong growth in spending on entertainment which was up 9% in the quarter, boosted by the lifting of pandemic restrictions.

On a year-on-year basis, spending in the capital was up almost 7.5% as society reopened and consumers started to unwind their pandemic savings.

The most significant increase was also in the entertainment category where spending was up almost 142% in the year.

There was a 10% increase in spending via e-commerce platforms in the year and an increase of almost 3% in the quarter.

"The persistent strength of this method beyond the worst of the pandemic, and the absence of any real reversal in consumer trends, points towards lasting behaviours in this regard," the report concludes.

At the national level, total retail spending was marginally stronger than in the Capital with an 8.3% increase in the year.

Tourism spending was up 72% year on year in Dublin but the capital continues to lag the rest of the country where growth in spending of 294% was recorded.

"One silver lining to the crowds at the airports is that tourism spending is recovering nicely in Dublin and across Ireland. Entertainment spending has also posted impressive results along with a strong rebound in discretionary spending," Michael McNamara, Global Head of SpendingPulse at MasterCard said.

"The net result is that while the long queues due to the travel recovery are challenging, the positive economic impact on the community and the country are compelling," he added.