Ireland Falls Back Into Deflation in October


Irish consumer prices fell 0.3 percent in the year to October 2016, after being flat in the previous month and worse than market expectations of 0.1 percent drop. Cost declined at a faster pace for food and non-alcoholic beverages; furnishings, household equipment and routine household maintenance and recreation and culture. On a monthly basis, consumer prices dropped 0.5 percent, while markets expected 0.1 percent decline.

Year-on-year,  cost declined at a faster pace for food and non-alcoholic beverages (-2.2 percent from -1.1 percent in September); furnishings, household equipment and routine household maintenance (-3.8 percent from -3.5 percent) and recreation and culture (-2.4 percent from -1.8 percent). In contrast, prices fell less for transport (-2 percent from -3.2 percent) and rose for housing and utilities (+0.2 percent from -0.9 percent). 
  
On a monthly basis, consumer prices fell 0.5 percent, following a 0.4 percent decrease in September. The most significant changes were decreases in miscellaneous goods and services (-1.5 percent); restaurants and hotels (-0.8 percent); recreation and culture (-0.5 percent); transport (-0.8 percent); clothing and footwear (-1.4 percent); food (-0.4 percent) and furnishings (-0.8 percent). In contrast, there were increases in housing and utilities (+0.6 percent) and education (+1.3 percent).

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

Ireland Falls Back Into Deflation in October


CSO | Yekaterina Guchshina | yekaterina@tradingeconomics.com
11/10/2016 11:31:16 AM