Figures from the Central Statistics Office (CSO) show that the standard of living declined by 1.2% in the third quarter of last year, when compared to the same period the previous year.
Household earnings were up between July and September as more people were in work, but inflation outpaced this growth, leaving real income lower.
During this three month period, household consumption grew partly due to high inflation, but also because more goods and services were used.
"With higher inflation in recent quarters, real disposable income has been declining," said Peter Culhane, Statistician in the National Accounts Analysis and Globalisation Division of the CSO.
"This has been a slow reduction in living standards, as wages continued to rise but did not keep pace with prices," he added.
In terms of savings, the CSO figures show that households saved 19% of their income during the third quarter, down from 20% in the previous quarter.
Before the pandemic, households saved around 10% of their total disposable income, so 19% is still well above the long-term average.
Today's figures show that the Gross Value Added of Non-Financial Corporations, which drives Ireland's Gross Domestic Product (GDP), was €18bn - 21% higher in the third quarter compared with the equivalent quarter of 2021.
"The economy more widely grew in the quarter," said Mr Culhane of the CSO.
"This expansion was dominated by foreign multinationals here, but domestically-owned corporations also saw some increase in value added.
"This improved situation fed into the government's net lending, as taxation income grew, and expenditure declined due to fewer pandemic supports being in place," he added.
