Annual inflation slows to 5.1% following drop in energy prices
Last Now As Rate October For Over Has Years, Inflation The Been Annual 2021 As 5% Far Back Going The Two
Annual inflation in Ireland slowed during the month of October to 5.1% following two months of increases as energy price drops start to have an impact, new Consumer Price Index data shows.
In September, annual inflation was running at 6.4% and in August it was 6.3%. The inflation rate has now been over 5% for the last two years, going back as far as October 2021.
Core inflation — which removes volatile commodities such as energy and food — was up 6.3% during October. This is an increase from the 6.1% recorded in September.
Compared to October last year, the sectors with the highest inflation were recreation and culture, with prices up 9.7%, restaurants and hotel prices were up 7.7%, while food and non-alcoholic drinks were up 7%.
The increase in the costs associated with recreation and culture was primarily due to higher prices for package holidays, participation in recreational and sporting services, as well as products for pets.
The higher prices of alcoholic drinks and food consumed in licensed premises was the main reason for the increasing cost in the restaurants and hotel sectors.
The housing, water, electricity, gas, and other fuels category saw prices up 7.2%, but this was largely due to the increasing cost of mortgage interest repayments, rents and services for the maintenance and repair of the dwelling.
The subcategory in this area, “energy products”, actually saw prices drop 4.2% in the year to October.
Central Statistics Office statistician Anthony Dawson said compared to September, prices rose by 0.3%, with the most significant price changes seen in education, up 2%, and transport up 1.1%.
“Education rose mainly due to an increase in the costs associated with participating in third-level and second-level education, while transport was up primarily due to higher prices for airfares, diesel and petrol,” Mr Dawson said.