Ireland’s annual inflation rate is estimated to have slowed to 3.3% in June, marking its lowest level in four months, according to a preliminary estimate released by the Central Statistics Office (CSO).
The latest reading represents a slight decline from the 3.5% annual inflation rate recorded in May, suggesting that price pressures continued to ease during the month.
The CSO’s flash estimate, based on the Harmonised Index of Consumer Prices (HICP), also showed a modest decline in core inflation, which excludes energy and unprocessed food due to their price volatility. Core inflation is estimated to have fallen to 2.6% in June from 2.7% in May, pointing to a gradual slowdown in underlying price growth.
Energy prices recorded a noticeable monthly decline. According to the CSO, energy costs are estimated to have dropped by 1.9% in June compared with the previous month. Despite that monthly decrease, energy prices remained significantly higher than a year earlier, rising by an estimated 10% over the 12 months to June.
Food prices also showed signs of easing during the month. The CSO estimated that food prices fell by 0.3% in June compared with May. On an annual basis, food prices increased by 0.7% over the 12-month period ending in June, indicating relatively modest growth compared with previous periods of higher inflation.
The Harmonised Index of Consumer Prices is the standard measure used across the European Union to compare inflation rates between member states. It provides a consistent basis for assessing price trends across the euro area and plays an important role in economic analysis and monetary policy.
The latest figures suggest that inflation in Ireland continues to move lower after remaining above the European Central Bank’s long-term target for an extended period. While annual price growth remains above 3%, the easing in both headline and core inflation may offer some relief to households facing higher living costs.
The preliminary June estimates are subject to revision when the CSO publishes its full inflation report later. Economists and policymakers will also be watching inflation trends across the euro area to assess whether similar patterns are emerging in other member states.
The corresponding inflation rate for the euro zone, measured using the same Harmonised Index of Consumer Prices, is scheduled to be released on Tuesday. The data will provide a broader picture of inflation across the single currency bloc and may offer further insight into the direction of price pressures in the region.
