Ireland Deflation Deepens in July

Consumer prices in Ireland decreased by 0.2 percent year-on-year in July of 2015 from a 0.1 percent drop in the previous month, mainly driven by lower prices of transport, food and clothing.
CSO | 8/13/2015 11:40:34 AM
Compared to July 2014, prices of transport declined at a faster 3.8 percent (compared to -2.5 percent in June). Also, cost of food and non-alcoholic beverages decreased further by 2.4 percent (compared to -2.2 percent in June); and clothing and footwear prices went down by 3.7 percent (compared to -3 percent in June). Additional downward pressure came from: Furnishings, household equipment & routine household maintenance (-1.7 percent); recreation and culture (-0.8 percent); alcoholic beverages and tobacco (-0.5 percent); and health (-0.2 percent).

In contrast, cost of education increased by 5 percent; communications by 2.8 percent; restaurants and hotels by 1.9 percent; and housing and utilities by 1.8 percent.

Annual core inflation advanced to 0.8 percent in July, up 0.2 p.p. when compared to the previous month.

On a monthly basis, consumer prices fell 0.4 percent, compared to a 0.3 percent growth in the previous month. Downward pressure came from: clothing and footwear (-7.7 percent compared to -1.3 percent in June); and food and non-alcoholic beverages (-0.5 percent compared to -0.3 percent June). Meanwhile, cost of restaurants and hotels increased by 0.6 percent; and transport prices rose 0.4 percent.

The harmonized index increased by 0.2 percent year-on-year while declined by 0.3 percent in the month.

Ireland Deflation Deepens in July