Ireland Slides Back Into Deflation

Irish consumer prices fell 0.1 percent in the year to August 2016, following a 0.5 percent gain in the previous month. It was the first decline in four months, mainly due to a sharp drop in cost of transportation and housing and utilities.

Year-on-year, prices fell at a faster pace for: Transportation (-4.6 percent from -3 percent in July); furnishings, household equipment and routine household maintenance (-3.8 percent from -3.6 percent); communications (-3 percent from -1.5 percent); and housing, water, electricity, gas and other fuels (-1.5 percent from -1.2 percent). By contrast, upward pressure came from: Miscellaneous goods and services (+5.1 percent from +6.6 percent in July); education (+3.8 percent, the same as in the previous month); restaurants and hotels (+2.5 percent from +2.8 percent) and alcoholic beverages and tobacco (+1.8 percent from +1.7 percent).

On a monthly basis, consumer prices fell 0.2 percent, the same pace as in the previous month. The most significant monthly price changes were decreases in transport (-1.6 percent) and communications (-1.4 percent); while cost rose for clothing and footwear (+4.8 percent) and restaurants and hotels (+0.2 percent). 

The harmonized index decreased by 0.4 percent compared to a year earlier and fell 0.2 percent in the month.

Ireland Slides Back Into Deflation

CSO | Joana Ferreira |
9/8/2016 11:18:14 AM