New data from the Central Statistics Office (CSO) reveals that Ireland’s annual inflation rate decreased to 1.7% in August, down from 2.2% in July. This marks the first time since June 2021 that the annual inflation rate has dipped below 2%.
According to the CSO, the most notable price increases over the past year were in the sectors of restaurants and hotels, where prices surged by 4.5%. This rise was attributed to higher costs for food and drinks. Additionally, miscellaneous goods and services, which encompass items such as hairdressing, jewelry, insurance, and childcare, saw a 4.1% increase.
Conversely, the cost of clothing and footwear fell by 6.2% compared to August of the previous year. Housing, water, electricity, gas, and other fuels also experienced a decrease in costs, easing by 1.9%.
On a monthly basis, consumer prices increased by 0.1% in August. The most significant monthly price rise was observed in clothing and footwear, which saw a 2.8% increase due to a recovery from post-sale discounts. Prices in restaurants and hotels also climbed by 0.5%.
In contrast, prices for recreation and culture dropped by 1.4% month-over-month, and transport costs fell by 0.8%, largely due to lower airfares.
The CSO also reported that inflation, as measured by the Harmonised Index of Consumer Prices (HICP), which excludes mortgage interest costs, moderated to 1.1% year-on-year in August, down from 1.5%. This aligns with earlier flash estimates released earlier in the month.
The latest figures suggest a continuing trend of easing inflationary pressures, offering a potentially positive signal for the economic outlook.
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