Inflation in the country has dropped significantly, falling from 1.7% in August to just 0.7% in September, marking the lowest rate since March 2021. This decline is primarily attributed to a substantial decrease in energy prices, which has alleviated some of the pressures that consumers faced during the cost of living crisis two years ago.
Over the past year, gas prices have decreased by 19%, while home heating oil and solid fuels have seen declines of 17% and 8%, respectively. In addition to energy, clothing and footwear prices have also fallen, down 7.5% compared to last year.
However, not all sectors experienced a decline in prices. In September, prices in hotels and restaurants rose nearly 4%, and the costs of alcohol and tobacco increased by 3%. Excluding energy and unprocessed food, consumer prices rose by 2.4% during the same period.
Anthony Dawson from the Central Statistics Office (CSO) noted that specific food items saw price fluctuations as well. For instance, the price of a 2.5kg bag of potatoes increased by 41 cents, while a pound of butter rose by 39 cents. Additionally, the price of spaghetti increased by one cent per 500g, and the cost of two liters of full-fat milk also inched up by a cent.
Conversely, some staple food items saw price decreases. The cost of Irish cheddar cheese per kilogram fell by five cents, and an 800g loaf of white sliced bread decreased by four cents. The price of an 800g loaf of brown sliced bread also dropped by one cent when compared to September 2023.
This recent inflation data indicates that while overall prices continue to rise annually, the pace of that increase has slowed significantly, providing some relief to consumers. The decline in energy costs is particularly noteworthy, as it has a direct impact on household budgets and broader economic stability. As the government continues to monitor these trends, further changes in consumer spending and pricing dynamics are expected in the coming months.