Irish Inflation Rate Turns Negative in September

Consumer prices in Ireland decreased by 0.3 percent year-on-year in September of 2015, after showing no growth in the previous month. It was the sharpest fall in four months mainly driven by a drop in cost of transportation, as prices of petrol and diesel continued to fall.

Year-on-year, prices of transport declined further by 5.5 percent (compared to a 3.3 percent fall in August), as cost of petrol and diesel dropped by 11.8 percent and 16.2 percent, respectively. Additional downward pressure came from: Clothing and footwear (-4 percent); furnishings, household equipment and routine household maintenance (-2.6 percent); and, food and non-alcoholic beverages (-2.2 percent). By contrast, cost of education increased by 5 percent; miscellaneous goods and services by 2.8 percent; communications by 2.4 percent; and restaurants and hotels by 1.7 percent.

Annual core inflation advanced to 1.2 percent in September, up 0.1 p.p. when compared to the previous month.

On a monthly basis, consumer prices fell 0.5 percent, the highest fall since January, from a 0.4 percent growth in the previous month. The biggest price decreases were reported for: Transport (-4 percent); and, restaurants and hotels (-0.5 percent). Meanwhile, cost of clothing and footwear increased by 4.2 percent and miscellaneous goods and services by 0.7 percent.

The harmonized index remained unchaned compared to a year earlier while declined by 0.5 percent in the month.

Irish Inflation Rate Turns Negative in September

CSO | Joana Ferreira |
10/8/2015 11:42:13 AM