Irish Inflation Rate Hits 3-Month Low of 1% in May

The annual inflation rate in Ireland fell to 1.0 percent in May of 2019 from 1.7 percent in the previous month. It was the lowest inflation rate since February, as prices slowed mostly for housing & utilities, transport and restaurants & hotels.
CSO | Luisa Carvalho | 6/13/2019 11:18:52 AM
Year-on-year, inflation eased for housing & utilities (4.4 percent vs 4.7 percent in April), mostly due to a slowdown in the price of electricity, gas and other fuels (5.3 percent vs 5.8 percent); transport (0.1 percent vs 3.7 percent), as cost rose less for diesel (5 percent vs 6.8 percent) and it declined for air fares (-16.2 percent vs 19.8 percent); and restaurants & hotels (3.2 percent vs 3.7 percent), namely accomodation services (3.7 percent vs 4.2 percent). Also, prices continued to fall for food & non-alcoholic beverages (-0.2 percent vs -0.1 percent), of which meat (-0.7 percent vs -0.5 percent); coffee, tea and cocoa (-0.5 percent vs 0.3 percent) and mineral waters, soft drinks, fruit & vegetable juices (-1.4 percent vs 0.7 percent); clothing & footwear (-1.3 percent vs -1.1 percent); communications (-6.1 percent vs -3.3 percent) and furnishings (-3.9 percent vs -3.6 percent).

On the other hand, cost rose faster for recreation & culture (0.4 percent vs 0.1 percent); alcoholic beverages & tobacco (2.7 percent vs 2.4 percent), on higher prices for tobacco products; and health (0.7 percent vs 0.6 percent). 

Annual core inflation, which excludes energy and unprocessed food, fell to 0.6 percent in May from 1.4 percent in April.

On a monthly basis, consumer prices dropped 0.1 percent, after a 0.4 percent rise in the prior month. The largest downward contribution to the CPI in the month were tarnsport (-0.23 percent) and communications (-0.08 percent) while the divisions which caused the largest upward contribution were restaurants & hotels (+0.09 percent) and housing, water, electricity, gas & other fuels (+0.05 percent).

The harmonized index of consumer prices rose by 1.0 percent from the previous year (vs 1.7 percent in April); and decreased by 0.1 percent from the previous month (vs 0.4 percent in April).

Irish Inflation Rate Hits 3-Month Low of 1% in May