Ireland Reports Deflation for the Third Consecutive Month


Consumer prices in Ireland fell 0.5 percent in February of 2015, slowing slightly from a 0.6 percent drop in January. Yet, a rise in cost of housing, water, electricity and gas and higher prices of restaurants was not enough to offset a drop in energy prices.

In the year, restaurants and hotels prices went up 1.8 percent as a result of higher cost of hotel accommodation. Prices of housing, water, electricity and gas increased by 1.6 percent primarily due to higher rents and the introduction of water supply and sewage collection charges. 

In contrast, prices of transport fell 7 percent due to lower cost of petrol and diesel. Costumers paid less for clothing and footwear (- 3 percent) as a result of winter sales and lower prices of meat, vegetables and bread and cereals led to a 2.9 percent drop in the food index. Furnishings and household equipment prices declined by 2.7 percent.

On a monthly basis, Irish consumer prices rose by 0.6 percent, after a 0.8 percent fall last month. The increase was attributed to a rise in clothing and footwear (+ 0.24 percent) as a result of the end of winter sales. Other upward pressures came from restaurants and hotels (+ 0.14 percent) and housing, water, electricity and gas (+ 0.1 percent).

Prices on average, as measured by the EU Harmonised Index of Consumer Prices (HICP), decreased by 0.4 percent compared with February of 2014.

 Ireland Reports Deflation for the Third Consecutive Month


CSO | Carolina Cunha | carolina.cunha@tradingeconomics.com
3/12/2015 11:53:36 AM