Hous­ing costs hold in­fla­tion close to 1%

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

Higher hous­ing costs kept Ir­ish in­fla­tion close to 1 per cent last month, ac­cord­ing to the Cen­tral Sta­tis­tics Of­fice.

The lat­est Con­sumer Price In­dex shows prices across the State rose 0.9 per cent in the 12 months to Oc­to­ber, un­changed from the pre­vi­ous month.

The main driver was an in­crease in the cost of hous­ing, wa­ter, elec­tric­ity, gas and other fu­els, which rose 5.5 per cent. Trans­port costs in­creased 3.3 per cent, mainly due to higher prices for diesel and petrol, which were par­tially off­set by a de­crease in air fares.

The cost of al­co­holic bev­er­ages, to­bacco, restau­rants and ho­tels was also up 2.1-2.6 per cent, pri­mar­ily due to higher prices for al­co­holic drinks and food con­sumed in li­censed premises. The price of fur­nish­ings and house­hold equip­ment fell 4.3 per cent.

In­fla­tion­ary pres­sure in the Ir­ish econ­omy has in­creased mod­estly in the past few months af­ter sev­eral years of weak or non-ex­is­tent price pres­sure.

Stim­u­lus pro­gramme

Euro-zone in­fla­tion ac­cel­er­ated last month, sup­port­ing the Euro­pean Cen­tral Bank’s de­ci­sion to wind down its stim­u­lus pro­gramme even if growth is slow­ing more sharply than fore­cast.

Con­sumer price growth in the euro zone was 2.2 per cent in Oc­to­ber, up from 2.1 per cent pre­vi­ously, hold­ing above the ECB’s tar­get of just be­low 2 per cent for the fifth month run­ning.

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