Deflation rate hits 3.5% in April
15 May 2009
Consumer prices in April decreased by 0.8% in the month according to the CSO Consumer Price Index for April 2009 published on 14 May. As a result, prices on average, were 3.5% lower in April compared with April 2008. The primary factor contributing to the falling annual inflation rate is the decreasing contribution of housing, water, electricity, gas and other fuels, clothing and footwear and transport.
A 0.8% fall in prices in April means that the cost of living as measured by the CPI is now declining at its fastest pace since May 1933.
The CSO data shows inflation is being driven down by decreases in the prices of housing, water and energy (-19.1%), clothing and footwear (-11.9%) and transport (-4.8%).
For the month, there were increases in alcoholic beverages and tobacco (+8.0%), miscellaneous goods and services (+8.7%), education (+5.3%) and health (+4.5). Mortgage interest rates rose by 0.1% and are down by 0.3% in the year.
Prices for food and non-alcoholic beverages decreased by 1.1% in the month and by 1.7% in the year to April 2009. This compares to an increase of 8.1% for the year to April 2008.
Inflation Rate by Product and Service Group
CSO Product and Service Group
| 1month %Change | 12months %Change |
Food and Non-Alcoholic Beverages
| -1.10% | -1.70% |
Alcoholic Beverages and Tobaccos
| +2.10% | +8.00% |
Clothing and Footwear
| -3.60% | -11.90% |
Housing, Water, Electricity, Gas and Other Fuels
| -4.50% | -19.10% |
Furnishings, Household Equipment and Routine Maintenance
| -1.30% | -3.00% |
Health
| +0.30% | +4.50% |
Transport
| +1.10% | -4.80% |
Communications
| 0.00% | +0.80% |
Recreation and Culture
| +0.30% | +0.10% |
Education
| -0.20% | +5.30% |
Restaurants and Hotels
| +0.30% | +0.60% |
Miscellaneous Goods and Services
| 0.00% | +8.70% |
| All items | -0.80% | -3.50% |