Inflation at near four-decade high of 8.7% in August

The Irish economy is seeing the fastest rate of price growth since 1984
Inflation at near four-decade high of 8.7% in August

Tomas Doherty

Headline inflation in the Irish economy was close to a four-decade high last month, according to the Central Statistics Office (CSO).

Consumer prices in the Republic rose by an average of 8.7 per cent in the 12 months to August, down slightly from the 9.1 per cent increase seen in July.

This was the first fall in headline price growth seen in the economy for 16 months.

The main drivers of higher living costs were housing, energy, fuel and transport.

Electricity, gas and other fuels were up 20.3 per cent year-on-year. Within this category, electricity prices were up 38.1 per cent, while gas prices rose by 56.1 per cent.

The cost of home heating oil has soared by almost 73 per cent since this time last year, according to the CSO figures.

Prices have been rising on a yearly basis since April 2021, with annual inflation of 5 per cent or more recorded each month since October last year.

The Central Bank warned in July that headline inflation is likely to rise above 10 per cent in the third quarter before falling back later in 2022.

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