Consumer prices fall for third straight month

Consumer prices have fallen for a third consecutive month on the back of cheaper prices for household furnishings, transport and communications.

Figures from the Central Statistics Office (CSO) show prices fell 0.4 per cent in September following a 0.2 per cent fall in each of the previous months.

This gave rise to a zero rate of annual inflation.

Ireland’s annual inflation rate had hit 0.5 per cent in July – its highest level in three years – but falling fuel costs and lower car prices dragged it back since.

The new Brexit paradigm and the subsequent weakness in sterling is expected to impact on consumer prices here with a stronger euro driving British imports lower in price terms.

According to the CSO, the most notable changes in the year were decreases in household furnishings (-3.5 per cent), transport (-3.2 per cent) and communications (-2.7 per cent).

The CSO noted transport costs have been falling due to lower petrol and diesel prices, a reduction in the price of cars and a fall in air fares.

Conversely, there were increases in the price of miscellaneous goods and services, including motor insurance, which rose 4.4 per cent. Within this category, the cost of motor insurance rose 25 per cent on an annual basis.

The CSO figures also show there were increases in education (+3.8 per cent) and restaurants and hotels (+2.2 per cent).