Energy prices driving-force behind 5% rise in inflation

Muireann Duffy

Inflation showed a very marginal increase in the month to September, rising just 0.1 per cent since August, but was up 5 per cent annually according to the Central Statistics Office.

The EU Harmonised Index of Consumer Prices (HICP) showed Ireland was slightly below the annual rate of all the Eurozone countries combined, which was 5.2 per cent.

The HICP is a harmonised version of the Consumer Price Index, the measure used to calculate inflation, and allows for comparison among countries in the Eurozone.

In the year to September, energy prices showed a 9 per cent increase and jumped 3.7 per cent since August.

Food prices were relatively stable in the month, rising 0.4 per cent on last month. However, prices were up 7.5 per cent compared to the same time last year.

Taking energy and unprocessed food out of the equation, annual inflation was estimated at 4.5 per cent.

The corresponding figures for other Eurozone countries are due to be published by Eurostat on Friday.