New data from the Central Statistics Office (CSO) shows that inflation growth slowed slightly last month, with the Consumer Price Index rising 2.7% in the year to the end of January. This represents a modest decline from the 2.8% increase recorded in December and is significantly lower than the 3.2% growth reported in November.
Across the eurozone, inflation also eased, dropping to 1.7% in January from 2% a month earlier, indicating a broader trend of slowing price growth in the region.
The CSO said energy prices remained broadly flat, while transport costs fell slightly, helping to temper overall inflation. In contrast, food prices rose by 3.9%, and insurance and financial services increased by 6.1%, contributing to persistent upward pressure on living costs.
“While the overall inflation rate has eased slightly, certain essential goods and services are still seeing sharp increases,” a CSO spokesperson said. The annual rate of inflation has returned to levels last seen in September 2025 but remains above January 2025’s 1.9%.
Education and clothing saw some of the largest price rises over the year. Education costs jumped 8.9%, while clothing and footwear increased 7.3%, reflecting higher demand and supply chain pressures in these sectors.
Other areas of the economy experienced smaller or negative changes. Furnishings, household equipment, and routine household maintenance fell by 0.6%, while transport costs were down 0.1% compared with the same month last year. These declines helped offset some of the higher increases in other sectors.
The data suggests that while inflationary pressures are easing, households continue to feel the impact of rising costs in key areas such as food, insurance, and education. Analysts say that targeted price growth in specific sectors is influencing household budgets, even as overall inflation moderates.
The January figures follow a period of fluctuating inflation over the past year, with rates peaking at 3.2% in November before slowing in December and January. Economic observers are watching closely to see whether the trend of easing price growth continues in the months ahead, particularly as energy and transport costs stabilise.
Overall, the CSO data provides a snapshot of how inflation is evolving across sectors, showing mixed trends. While some categories are seeing moderate declines, others, particularly essential goods and services, continue to rise at a faster pace, keeping inflation concerns relevant for policymakers and consumers alike.
