Inflation slows down in October
13 November 2008
The Consumer Price Index (CPI) for October 2008 shows the annual inflation decreasing from 4.3% in September to 4% in October. This is the lowest rate since October 2006.
On a monthly basis, inflation decreased by 0.2% in October compared with an increase of 0.3% in September 2008.
But the latest figures from the Central Statistics Office do not include increases in excise duties announced in the Budget – these came into force after the pricing reference day for compiling October’s figures for the CPI.
The most significant monthly price increases were in Education (+3.6%, due to increases in education costs at all levels) and in Miscellaneous Goods and Services (due to an increase in childcare costs and higher home insurance premiums).
Food prices
Prices for food and non-alcoholic beverages decreased by 0.1% in the month and –0.5% over the past three months. Inflation for this category began increasing in October 2007, peaking at 9.3% in March 2008.
While inflation for food and non-alcoholic beverages remains high at 4.6%, the CSO says the rate of increase has eased significantly in the past six months and food prices have now returned to a more stable rate of increase.
On an annual basis, food inflation (excluding beverages) is currently at 4.7%. Notable price increases are:
- Milk +15.4%
- Bread +7.9%
- Butter +4.8%
- Meat +4.8%
The CSO says food price inflation in Ireland is broadly similar to the experience across Europe, apart from the UK where it is running at a much higher level at 12.7%.