According to new data from the Central Statistics Office (CSO), inflation rates remained steady in July, with consumer prices seeing a modest rise of just above 2 per cent. The Consumer Price Index reported a 2.2 per cent increase for the year up to July, 2024, which is equivalent to the previous month’s inflation rate, indicating a consistent deceleration of price growth within the Irish economy.
Noticeably, the slashing of energy prices contributed significantly to this trend. If one discounts energy and raw food, the consumer price index still demonstrated a growth of 3.1 per cent. The sectors with the most considerable price hikes were transport, where fuel costs resulted in a 5.5 per cent increase in prices, and restaurants and hotels, with a rise of 4.3 per cent owing to costlier alcoholic beverages and food served in licensed premises and eateries.
From a year-on-year perspective, the prices for clothing and footwear dipped by 4.9 per cent, influenced by sales lowering the costs, and furnishings with home maintenance, which experienced a 1 per cent drop in prices. In terms of monthly progress, there was a 0.2 per cent increase in consumer prices compared to June, propelled by a 3 per cent increase in the cost of recreation and culture due to elevated package holiday prices, and nearly a 2 per cent surge in transport costs. These hikes were counterbalanced by a 6.2 per cent reduction in clothing and footwear prices, as well as a slight decrease in the prices of miscellaneous goods and services.
The EU’s Harmonised Index of Consumer Prices (HICP) recorded a rise of 1.5 per cent compared to the previous year, with notable increases in the sectors of transport, restaurants and hotels, together with alcohol and tobacco. Sales brought down the prices of clothing and footwear by nearly 5 per cent, while the costs of housing, water and energy declined by 3.5 per cent. In a monthly comparison, the HICP noted an increase of 0.2 per cent.
It’s worth remembering that the HICP doesn’t encompass elements like mortgage repayments and the cost of construction materials, both of which have recently seen sharp price escalations and make up a considerable portion of a household’s monthly expenditure.
In measuring the national average prices for certain products, the CSO found that the price of a large white sliced loaf decreased by 3 cents in the year leading up to July, 2024. Additionally, a brown sliced loaf’s price dropped by 2 cents over the same period.
The cost of milk witnessed a decrease, with the price of 2 litres of whole milk going down by a penny over the last year. Conversely, butter prices saw an increase of 3 pennies for every pound. Moreover, the typical price of cheddar from Ireland rose by 10 pennies for every kilogram while a 2.5 kg sack of potatoes experienced a surge of 66 pennies.