Energy costs in Ireland fell by 4.3% between April and May, according to a flash estimate released by the Central Statistics Office (CSO), offering some short-term relief for households still facing elevated living expenses.
The latest figures, based on the EU Harmonised Index of Consumer Prices (HICP), show that despite the monthly decline, energy prices remain significantly higher on an annual basis. Compared with May last year, energy costs were up 11.9%, underlining the continued volatility in the sector despite recent easing.
Overall inflation also showed signs of cooling. The HICP estimate indicates that consumer prices fell by 0.1% month-on-month in May, while rising 3.5% compared with the same period last year. The data points to a broadly stable price environment, though pressures remain uneven across categories.
Food prices, another key driver of household spending, edged slightly lower over the month, falling by 0.1%. However, the breakdown reveals mixed movements within the category. Unprocessed food became 0.5% more expensive, while processed food prices rose by 0.2%.
On an annual basis, food inflation remains positive but modest. Processed food prices are up 1.3% compared with May last year, while unprocessed food has increased by 2.5%, reflecting ongoing cost pressures in supply chains and agricultural inputs.
All other major categories within the HICP recorded monthly increases, suggesting that price pressures have not fully eased across the broader economy even as energy costs temporarily declined. The combination of falling energy prices and rising costs in other areas highlights the uneven nature of current inflation trends.
The CSO noted that this is a flash estimate and will be updated when more detailed data is released. A comprehensive breakdown of consumer price trends for Ireland is scheduled for publication on 11 June.
At a wider level, a flash estimate for eurozone inflation is expected next week, which will provide further context on how Ireland’s price movements compare with broader European trends. Economists will be watching closely for signs of whether recent declines in energy prices could feed through into more sustained easing in inflation across the region.
For now, the data suggests a cautiously improving picture, with energy costs providing temporary relief even as underlying price pressures persist in food and other goods.
