Inflation rate slows for third month in a row

David Young, PA

The annual rate of inflation in Ireland has continued to slow, latest figures show.

The Consumer Price Index (CPI) rose by 7.8 per cent between January 2022 and January 2023, down on the 8.2 per cent rate recorded in December, according to data published by the Central Statistics Office (CSO).

It is the third straight month when the annual CPI rate has fallen.

Consumer prices rose by 7.8% over the 12 months to January 2023https://t.co/L91Kivq4ns#CSOIreland #Ireland #CPI #ConsumerPrices #Inflation #Deflation #Prices #BusinessStatistics #Business #BusinessNews #IrishBusiness pic.twitter.com/c7iNnKrIiW

— Central Statistics Office Ireland (@CSOIreland) February 16, 2023

But it is the sixteenth month in a row where the headline inflation rate has been at least 5 per cent, and the 7.8 per cent rate is still almost four times higher than the European Central Bank’s target rate of 2 per cent.

Housing, water, electricity, gas and other fuels is the category that has experienced the highest year-on-year increase at 26.4 per cent. Non-alcoholic beverages have risen by 12.8 per cent in the last 12 months.

Detailed analysis of energy costs shows that gas prices are up 86% on January 2022, with electricity up by 63 per cent and home heating oil by 35 per cent.

In terms of food prices, whole milk is up 31 per cent in the last 12 months, with butter up 23 per cent and bread up 17 per cent.

The month-on-month comparison shows that consumer prices fell by 0.8 per cent in January compared to December.

Anthony Dawson, statistician in the CSO’s Prices Division, said: “The latest publication for the Consumer Price Index (CPI) shows that prices for consumer goods and services in January 2023 increased by 7.8% on average when compared with January 2022.

“This was down from 8.2 per cent in the 12 months to December 2022. Prices have been rising on an annual basis since April 2021, with annual inflation of 5 per cent or more recorded in each month since October 2021.

“However, this is the third straight month where the annual rate of inflation has fallen.”