Ir­ish in­fla­tion rises to 0.6% as restau­rant prices in­crease

The Irish Times - Business - - BUSINESS / NEWS - EOIN BURKE-KENNEDY

Ir­ish in­fla­tion has risen to a six-month high of 0.6 per cent on foot of higher prices in restau­rants and ho­tels as well as in­creased trans­port and hous­ing costs.

The lat­est con­sumer price num­bers from the Cen­tral Sta­tis­tics Of­fice (CSO) show over­all in­fla­tion­ary pres­sure in the Ir­ish econ­omy, how­ever, re­mains fairly sub­dued.

The main monthly changes af­fect­ing the CSO’s Con­sumer Price In­dex in Oc­to­ber were de­creases in the cost of ho­tel ac­com­mo­da­tion and air fares.

Elec­tric­ity charges, rents and the cost of home-heat­ing oil were also higher on a monthly ba­sis. On an an­nual ba­sis, hous­ing, wa­ter, elec­tric­ity, gas and other fuel prices rose by 3.1 per cent in Oc­to­ber, while prices in restau­rants and ho­tels were up 2.7 per cent.

Ed­u­ca­tion costs also rose by 1.8 per cent while prices for al­co­hol and to­bacco rose 1.2 per cent. How­ever, prices for cloth­ing and footwear dropped 4.7 per cent on an an­nual ba­sis, while fur­nish­ings and house­hold equip­ment prices were down 3.6 per cent.


“De­spite strong Ir­ish eco­nomic growth, there is lit­tle sign of sus­tained pres­sure on the prices front, which ap­pears to be the same story across the euro zone, sug­gest­ing that the Euro­pean Cen­tral Bank will be in no hurry to tighten mon­e­tary pol­icy,” Mer­rion econ­o­mist Alan McQuaid said. “Al­though the an­nual in­fla­tion rate should pick up in the com­ing months, in­fla­tion­ary pres­sures in Ire­land, as mea­sured by the head­line con­sumer price in­dex, are in gen­eral likely to stay rea­son­ably well-con­tained for the im­me­di­ate fu­ture,” he said.

“Oil prices will be crit­i­cal in de­ter­min­ing the head­line in­fla­tion out­look over the next 12 months or so, but they re­main volatile and hard to pre­dict given the un­cer­tainty over Opec sup­ply and geopo­lit­i­cal ten­sions in the Mid­dle East,” he said.

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