Rising rents drive Irish inflation to 18-month high of 0.9%

Rising rents drove Irish inflation to an 18-month high of nearly 1 per cent in September.

The latest Consumer Price Index shows prices nationally rose by 0.9 per cent in the 12 months to September, which was the highest level recorded since April 2017.

The main driver was an increase in the cost of housing, water, electricity, gas and other fuels, which rose by 6.3 per cent.

The cost of restaurants and hotels also increased by 2.2 per cent primarily due to higher prices for alcoholic drinks and food consumed in licensed premises.

Higher taxes in hospitality and other sectors have made us less competitive

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Transport costs also rose by 2.2 per cent mainly due to higher prices for diesel and petrol which was partially offset by a decrease in air fares.

Conversely, the price of furnishings and household equipment fell by 3.7 per cent.

Inflationary pressure in the Irish economy has remained weak for several years thanks in the main to lower oil prices internationally.

Euro zone inflation rose to 2.1 per cent in September on back of rising energy and food costs. However, the rate excluding the cost of food and energy fell to 1.1 per cent from 1.2 per cent the previous month.