Ireland’s annual inflation rate remained steady at 2.7% in February, unchanged from the previous month, according to new data from the Central Statistics Office (CSO). The figures, however, do not reflect the impact of the recent Middle East conflict, which has sharply increased global fuel and heating oil prices.
The CSO reported that the largest price rises over the 12 months to February were in Education Services, which jumped 8.9%, and Insurance & Financial Services, up 6%. In contrast, prices for Furnishings, Household Equipment & Routine Household Maintenance fell by 1.1%, while Transport costs eased by 0.3%.
On a monthly basis, consumer prices increased by 0.9% between January and February. The most significant rises were in Clothing & Footwear, which climbed 4.4%, and Recreation, Sport & Culture, up 2.4%. Alcoholic Beverages & Tobacco was the only division to record a monthly decrease, with prices down 0.5%.
Kate English, chief economist at Deloitte Ireland, warned that while February’s inflation appears stable, next month could see significant changes. “The situation in Iran could push energy and food costs higher, similar to the spike following Russia’s invasion of Ukraine in 2022,” she said. English highlighted that food inflation already sits at 3.4%, higher than the 2% level seen in early 2022. Rising fertiliser and gas costs could further increase prices if the Gulf conflict continues.
The CSO also released its National Average Prices for selected goods in February. The cost of a large (800g) white sliced pan increased by three cents over the year, while brown sliced bread rose by a cent. Meat prices saw notable increases, with 1kg of sirloin steak up €4.37. Potatoes dropped 20 cents for 2.5kg, and full-fat milk per 2 litres was down two cents. Butter increased three cents per pound, and Irish cheddar rose 30 cents per kg.
Beverage prices also showed mixed trends. A take-home 50cl can of lager fell by a cent to €2.41, while cider rose two cents to €2.71. Prices in licensed premises increased, with a pint of stout reaching €6.18, up 25 cents, and a pint of lager climbing 26 cents to €6.58 compared with February 2025.
Economic analysts will be closely watching next week’s interest rate decisions from the European Central Bank, the US Federal Reserve, and the Bank of England, as these could provide insight into how global energy tensions and rising costs might influence inflation in Ireland and across Europe.
The February data signals a stable baseline, but with global events exerting pressure on energy and food prices, Irish consumers may feel the effects in the coming months.
