Ireland Inflation Rate at Nearly 2-Year High


Irish consumer prices increased by 0.4 percent year-on-year in June 2016, rebounding from a flat reading in the previous month and beating market expectations of 0.2 percent drop. It was the biggest rise since August 2014, led by increases in prices of miscellaneous goods and services and accommodation while cost of transportation, furnishings and food fell.

Year-on-year, cost of miscellaneous goods and services went up 5.9 percent (from +5.6 percent in May) and prices of restaurants and hotels increased 2.9 percent (from +2.1 percent in May). Additional upward pressure came from: Education (+3.8 percent, the same as in the previous month) and health (+2 percent from +1.6 percent in May). By contrast, cost of transport (-4 percent from -5.3 percent), furnishings, household equipment and routine household maintenance (-3.6 percent from -3.1 percent), clothing and footwear (-2.7 percent from -1.1 percent) and communications (-1.2 percent, the same as in the previous month) continued to weigh on growth. 

On a monthly basis, consumer prices jumped 0.7 percent, accelerating from a 0.5 percent growth in the previous month. The most significant monthly price changes were increases in transport (+3.6 percent) and restaurants and hotels (+1.2 percent). Meanwhile, there were decreases in clothing and footwear (-2.9 percent) and furnishings, household equipment and routine household maintenance (-0.3 percent).   

The harmonized index increased by 0.1 percent compared to a year earlier and climbed 0.7 percent in the month.

Ireland Inflation Rate at Nearly 2-Year High


CSO | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/14/2016 11:24:16 AM