Ireland Slips Back into Deflation

Irish consumer prices fell 0.4 percent year-on-year in April 2018, following a 0.2 percent gain in the previous month and marking the first month of deflation since June last year.
CSO | Joana Ferreira | 5/10/2018 10:29:05 AM
The largest downward contribution to the CPI came from: transport (-4 percent vs 0.1 percent in March), mainly due to a decrease in air fares, a reduction in the price of motor cars and lower prices for other services in respect of personal transport equipment; miscellaneous goods & services (-3.8 percent vs -3.6 percent), primarily due to lower motor and health insurance premiums and lower prices for appliances, articles & products for personal care; food & non-alcoholic beverages (-2 percent vs -1.8 percent), due to lower prices across a range of products such as meat, vegetables, bread & cereals and jam, honey, chocolate & confectionery; and furnishings, household equipment & routine household maintenance (-3.7 percent vs -4.8 percent), due to the reduced cost of non-durable household goods, furniture & furnishings, household textiles and glassware, tableware & household utensils.

On the other hand, prices rose for: housing & utilities (4.8 percent vs 4.6 percent), mainly due to higher rents and an increase in the price of electricity and home heating oil; restaurants & hotels (2.2 percent vs 2.3 percent), primarily due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc. and an increase in the cost of hotel accommodation; and alcoholic beverages & tobacco (3 percent vs 2.7 percent), mainly due to higher prices for tobacco products.

The core index, which excludes energy and unprocessed food, fell 0.6 percent in April, also the first fall in nine months.

On a monthly basis, consumer prices dropped 0.2 percent, after a 0.3 percent gain in March. The most significant monthly price changes were decreases in transport (-1.8 percent), and food and non-alcoholic beverages (-0.6 percent).

The harmonised index of consumer prices declined by 0.1 percent from the previous year; and by 0.2 percent from the previous month.

Ireland Slips Back into Deflation