Irish September Inflation Rate at Near 1-1/2-Year High

The annual inflation rate in Ireland rose to 0.9 percent in September of 2018 from 0.7 percent in the prior month, hitting its highest level since April last year. Prices advanced faster for transport and restaurants & hotels while eased slightly for housing & utilities.
CSO | Luisa Carvalho | 10/11/2018 11:11:55 AM
Year-on-year, inflation quickened for: transport (2.2 percent vs 0.8 percent in August), with higher prices for diesel and petrol being partially offset by a decrease in air fares; restaurants & hotels (2.2 percent vs 2.1 percent), mainly due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc. and an increase in the cost of hotel accommodation; alcoholic beverages & tobacco (3.2 percent vs 2.9 percent) and health (0.3 percent vs 0.2 percent). 

Meanwhile, cost slowed a bit for housing & utilities (6.3 percent vs 6.4 percent), such as rents (4.1 percent vs 4.2 percent) and electricity, gas and other fuels (12.8 percent vs 13.0 percent). Also, prices continued to fall for: food & non-alcoholic beverages (-2.2 percent vs -2.6 percent), namely meat, vegetables, sugar, jam, honey, chocolate & confectionery and bread & cereals; recreation & culture (-0.9 percent vs -1.1 percent); clothing & footwear (-1.0 percent vs -0.8 percent); communication (-0.3 percent vs -2.3 percent); furniture & household equipment (-3.7 percent vs -4.1 percent), due to the reduced cost of non-durable household goods, furniture & furnishings, household textiles and glassware, tableware & household utensils; and miscellanous goods & services (-3.0 percent vs -3.1 percent), on lower health and motor insurance premiums and lower prices for appliances, articles & products for personal care.

The core index, which excludes energy and unprocessed food, rose by 0.3 percent year-on-year in September, after a 0.2 percent decrease in the previous month. It was the fastest increase in core consumer prices since February.

On a monthly basis, consumer prices fell 0.4 percent in September, after increasing 0.3 percent in August. Main downward pressure came from prices of: transport (-2.5 percent vs -1.0 percent) amid a reduction in air fares and a decrease in the cost of hiring personal transport equipment; restaurants & hotels (-0.7 percent vs 0.8 percent), due to lower cost of hotel accommodation; and food & non-alcoholic beverages (-0.4 percent vs -0.1 percent). In addition, cost slowed for housing & utilities (0.5 percent vs 1.3 percent) and clothing & footwear (3.0 percent vs 5.4 percent).

The harmonized index of consumer prices rose by 1.2 percent from the previous year (vs 0.9 percent in August); and dropped 0.3 percent from the previous month (vs 0.3 percent in August).

Irish September Inflation Rate at Near 1-1/2-Year High