Consumer prices in Ireland accelerated in August, rising at their fastest pace since April, according to the latest flash estimates from the Central Statistics Office (CSO).
The Harmonised Index of Consumer Prices (HICP) increased by 1.8% year-on-year, up from 1.6% in July. Core HICP, which strips out volatile items such as energy and unprocessed food, also rose, climbing to 1.9% from 1.7% in the previous month.
The CSO’s breakdown shows contrasting trends within key categories. Energy prices fell by 0.3% in August compared with July and were down 0.1% compared with a year earlier. However, food costs continued to push inflation upward, rising by 0.4% in the past month and showing a sharp 5% increase over the past 12 months.
The figures come ahead of the release of the euro zone flash inflation estimate, due on Tuesday, which will provide a broader picture of price pressures across the currency bloc.
While Ireland’s inflation rate remains below the peaks seen in 2022 and 2023, the latest data suggest that price growth has not fully stabilised. Economists have been watching closely for signs of persistent inflation, particularly in core categories, as these can influence European Central Bank (ECB) decisions on interest rates.
The CSO noted that flash estimates are subject to revision once the final HICP results are compiled and published next month. Historically, revisions have been minor, but they can alter the exact figures.
Ireland’s inflation trend has largely mirrored broader euro zone patterns in recent months, with easing energy costs offset by stubborn increases in food and service prices. The ECB has signalled that while inflation pressures have moderated, it will remain cautious in its monetary policy stance until price stability is firmly secured.
For households, the latest data underline the continued strain from rising grocery bills, even as energy costs provide some relief. With food inflation still elevated, families remain exposed to higher living expenses, though the overall inflation rate is significantly lower than last year’s double-digit levels.
