Annual inflation slows to 1.7% in May – CSO
New figures from the Central Statistics Office show that the annual rate of inflation slowed to 1.7% in May from a rate of 2.2% in April.
The CSO said inflation was flat month-on-month while the Harmonised Index of Consumer Prices, which strips out mortgage interest costs, fell to 1.4% on an annual basis from 2% in April.
Today’s figures show the most significant increases in the 12 months to May were seen in the price of food and non-alcoholic beverages, which rose by 4%. Price rises were seen across a range of products including meat, chocolate and milk, cheese and eggs. Prices of alcohol and tobacco also increased by 3.1%.
May also saw higher rents – up 5.3% – and a 1.3% increase in the cost of electricity. The cost of health and motor insurance premiums also rose last month – increasing by 8.7% and 8.5% respectively.
But transport costs on an annual basis slowed by 2.4% mainly due to lower prices for airfares, petrol and diesel, while clothing and footwear prices fell by 1.9%.
The CSO also published its National Average Prices for selected goods and services for May today.
This shows price increases for a pound of butter, which rose by €1.03, while Irish cheddar cheese per kg increased by 57 cent. Two litres of full fat milk moved 27 cent higher while an 800g loaf of white/brown sliced pan increased by five cent and spaghetti per 500g was up two cent.
But May saw reductions in the price of a 2.5kg bag of potatoes, which fell by 25 cent when compared with May last year.
Commenting on today’s figures, Dominic Lumsden, a spokesperson for Peopl Insurance, said that while today’s figures show that the rate of inflation has eased, there are many areas where inflation is running well above average.
These include postal services (up 7.4%), hygiene products (up 4.6%) and taxi fares (up 8.7%).
Today’s CSO figures also show that above-average inflation has also been recorded for many basic grocery items with butter prices up 18%, beef and veal prices up 19.9%, and fresh low fat milk prices up 13.7%, he added.
He said for people holidaying at home this summer, the rising cost of cinema trips (up 5.6%), restaurants and take-away food (up 3.3%), and recreational and sporting services (up 6.3%) will eat into their budget.
“Another price increase which may have gone under the radar now we’re into the milder summer months is the carbon tax increases which kicked in at the start of May. This will push up the cost of home heating oil, coal, briquettes and gas for consumers – making it more expensive for them to heat their homes,” Mr Lumsden said.
“While it will arguably be the colder autumn and winter months before homeowners feel the real brunt of these increases, the carbon tax hike will undoubtedly put more under pressure,” he added.
Article Source – Annual inflation slows to 1.7% in May – CSO – RTE