Rate of inflation increases marginally

The main yearly changes were seen in the alcoholic beverages and tobacco sector, where costs were up 5.4%
The main yearly changes were seen in the alcoholic beverages and tobacco sector, where costs were up 5.4%

Latest CSO figures show cost of alcohol and tobacco rose 5.4%

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12 September 2013

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The Central Statistics Office (CSO) says the annual inflation rate was 0.2% last month, with prices only 0.1% higher month-on-month. The main yearly changes were seen in the alcoholic beverages and tobacco sector, where costs were up 5.4%. This was mainly due to higher prices for alcohol in off licences and supermarkets, and an increase in tobacco prices.

There was a 4.8% rise in the cost of education, and a 1.6% increase in costs for restaurants and hotels, which was again attributed to higher alcohol prices. This was partly offset by decreases in clothing and footwear of 5.1%, which was due to the summer sales, with household furnishings and equipment falling by 4%. The cost of transport was also lower compared with a year earlier, falling by 3.3% as airfare prices declined and the cost of petrol and diesel fell.

On a monthly basis, the main changes were seen in clothing and footwear, which rose by 4.2%, while there was a marginal rise in the price of restaurants and hotels, of 0.2% as the cost of hotel accommodation rose. Food and non-alcoholic beverages fell by 0.6%, a similar monthly decline to that of alcohol and tobacco. The latest inflation figures show that hikes in the price of alcohol, cigarettes and education were cancelled out by falls in clothes, furniture and transport costs.

The cost of food and beverages rose by 1.1% in the last year. However some staples saw much bigger increases, with the price of bread soaring by 11.3% and milk rising by 4.2%. Potato prices are up over 9% in the year, while crisps, chocolate and processed fish prices also rose. There was some relief for motorists as petrol prices are down 3.3% in the year and diesel is down 4.3% while overall energy prices are down 0.7%.

Davy stockbrokers analyst Conall MacCoille said that inflation was at a three-year low reflecting lower energy and mortgage interest costs. But he noted that the price of services rose by 2.3% in the year which was indicative of a gradually growing economy.

 

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