New data from the Central Statistics Office (CSO) reveals that Ireland’s inflation rate increased to 2% in March, up from 1.8% in February. This marks the first time since July 2024 that inflation has been at or above 2%, when it reached 2.2%.
The CSO attributed the rise in inflation to several factors, notably higher costs in the restaurant and hotel sectors. Prices for alcoholic drinks and food consumed in these establishments saw a significant increase. Additionally, the inflationary pressures were exacerbated by higher rents and mortgage interest repayments, although these were somewhat offset by a drop in the price of home heating oil.
Health-related expenses also contributed to the rising inflation, with higher prices for medical services and insurance premiums. The motor insurance sector also saw an increase in prices.
Food and non-alcoholic beverages saw a notable price jump of 4.2% year-on-year. This was primarily driven by increased prices across a range of products, including milk, cheese, eggs, chocolate, confectionery, soft drinks, and meat. In contrast, the clothing and footwear sector experienced a slight price decrease of 1.9%, attributed to ongoing sales and promotions.
In addition to the Consumer Price Index, the CSO also reported on the Harmonised Index of Consumer Prices (HICP), a metric used for comparing inflation across European Union countries. The HICP increased by 0.7% from February to March, resulting in a 1.8% rise year-on-year.
The CSO also released detailed national average prices for selected goods and services in March. Among the key changes, the price of an 800g white sliced pan saw a slight decrease of one cent, while a 500g pack of spaghetti increased by two cents. The average price for a 2.5kg bag of potatoes dropped by 9 cents.
Dairy products saw notable price hikes, with the national average price for 2 liters of full-fat milk rising by 28 cents year-on-year. Butter increased by 76 cents per pound, and Irish cheddar saw a price rise of 50 cents per kilogram.
Alcoholic beverages also saw modest price increases. The average price for a 50cl can of lager rose by two cents to €2.39, while a 50cl can of cider remained unchanged at €2.69. In licensed premises, the average price of a pint of stout increased by 39 cents to €6.04, while a pint of lager saw a 37 cent increase, reaching €6.44.
As the country navigates through these inflationary pressures, the data highlights the ongoing challenges faced by consumers, particularly in the areas of food, accommodation, and healthcare. The government and economic analysts will be closely monitoring these trends to assess their impact on the broader economy.
