Ireland Slides Back Into Deflation


Irish consumer prices decreased by 0.4 percent in the year to June 2017 after rising by 0.2 percent in the previous month. It was the first drop in consumer prices since November last year and the sharpest decline since April 2015, as cost fell for food and non-alcoholic beverages, clothing and footwear, and furnishings and household equipment.

Year-on-year, the largest downward contribution to the CPI came from: Food and non-alcoholic beverages (-2.7 percent from -2.2 percent in May); clothing and footwear (-5.3 percent from -5.4 percent); and furnishings and household equipment (-3.7 percent from -3.9 percent). Prices also fell for transport (-0.9 percent from 2.2 percent in May), and recreation and culture (-1.6 percent from -1.7 percent). In contrast, cost rose for: restaurants and hotels (1.8 percent, the same as in May); housing, water, electricity, gas and other fuels (0.5 percent, the same as in May); and miscellaneous goods and services (0.2 percent, the same as in May).

Annual core inflation rate, which excludes energy and unprocessed food, fell to -0.4 percent from a flat reading in May.
  
On a monthly basis, consumer prices edged up 0.1 percent after a 0.2 percent decrease in May. The most significant monthly price changes were increases in restaurants and hotels (1.2 percent) and housing, water, electricity, gas and other fuels (0.5 percent). There were decreases in clothing and footwear (-2.8 percent) and food and non-alcoholic beverages (-0.7 percent).

The harmonized index fell by 0.6 percent compared to a year earlier and rose by 0.1 percent in the month.

Ireland Slides Back Into Deflation


CSO | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/13/2017 10:18:03 AM