Inflation in Ireland rises to 6.3%, new figures show

By Gráinne Ní Aodha, PA

Inflation in Ireland remains high, according to August figures published by the Central Statistics Office (CSO).

The Consumer Price Index (CPI) rose by 6.3 per cent in the year to August, up from an annual increase of 5.8 per cent in the 12 months to July.

Consumer prices rose by 0.7 per cent in the month between July and August.

This is the 23rd straight month where the annual increase in the CPI has been at least 5 per cent, according to the CSO.

Excluding energy and unprocessed food, the CPI increased by 6.4 per cent in the 12 months to August.

Anthony Dawson, statistician in the CSO’s prices division, said: “Prices have been rising on an annual basis since April 2021, with annual inflation of 5.0 per cent or more recorded in each month since October 2021.

“The most significant rises in the year were seen in housing, water, electricity, gas and other fuels which was up 17.3 per cent and recreation and culture, which was up by 12.9 per cent.

“Increased electricity (+25.1 per cent) and gas (+36.6 per cent) costs, along with higher mortgage interest repayments (+51.3 per cent) are reflected in the yearly growth of housing, water, electricity, gas and other fuels.

“The annual change in recreation and culture costs reflects a rise in prices in package holidays (+57.9 per cent) and pets and related products and services (+13.0 per cent) compared with August 2022.

“Education (-6.3 per cent) and transport (-2.0 per cent) were the only divisions to show a decrease when compared with August 2022.”

The Consumer Price Index measures the change in the average level of prices paid for consumer goods and services by households in the country and by tourists in Ireland.

Around 50,000 prices are collected for a representative basket of 615 items in a fixed panel of retail and service outlets throughout the country, from roughly the second to the third week of each month.

The EU Harmonised Indices of Consumer Prices compares consumer price trends in the different member states.