Irish Inflation Rate Rises to 1.1% in June


Ireland's annual inflation rate picked up to 1.1 percent in June of 2019 from a three-month low of 1 percent in the previous month, mainly boosted by increases in prices of housing & utilities, alcoholic beverages & tobacco, restaurants & hotels and education.

The largest upward contribution to the CPI came from  housing & utilities (4.0 percent vs 4.4 percent in May) mainly due to higher rents and mortgage interest repayments in addition to an increase in the price of electricity and gas, which was partially offset by a reduction in the price of home heating oil; alcoholic beverages & tobacco (3.3 percent vs 2.7 percent), amid higher prices for tobacco products; restaurants & hotels (3.1 percent vs 3.2 percent), due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc., which was partially offset by lower prices for hotel accommodation; and education (1.7 percent, the same as in May).  

On the other hand, prices fell for communications (-6.6 percent vs -6.1 percent), due to a reduction in the cost of telephone & telefax equipment and telephone & telefax services; furnishings, household equipment & routine household maintenance (-3.5 percent vs -3.9 percent), on the back of a reduced cost of furniture & furnishings, non-durable household goods and household textiles; clothing & footwear (-1.0 percent vs -1.3 percent) mainly due to sales; and miscellaneous goods & services (-0.6 percent vs -0.8 percebt) due to a reduction in prices for appliances, articles & products for personal care and other personal effects and lower motor insurance premiums. This reduction was partially offset by higher prices for hairdressing salons & personal grooming establishments and childcare services.

Annual core inflation, which excludes energy and unprocessed food, picked up to 1.1 percent in June from 0.6 percent in May.

On a monthly basis, consumer prices went up 0.2 percent, after a 0.1 percent drop in May. The largest upward contribution to the CPI in the month were transport (+0.23 percent), restaurants & hotels (+0.14 percent) and alcoholic beverages & tobacco (+0.05 percent) while the divisions which caused the largest downward contribution were clothing & footwear (-0.10 percent), food and non-alcoholic beverages (-0.04 percent) and communications (-0.02 percent).

The harmonized index of consumer prices rose by 1.1 percent from the previous year (vs 1 percent in May); and increased by 0.2 percent from the previous month (vs -0.1 percent in May).

Irish Inflation Rate Rises to 1.1% in June


CSO | Agna Gabriel | agna.gabriel@tradingeconomics.com
7/10/2019 10:27:56 AM