Headline inflation in the Irish economy remained close to a three-year low of 1 per cent in November, marginally up on the 0.7 per cent recorded the previous month, according to the latest consumer price index (CPI).
The data comes as the European Central Bank (ECB) is expected to reduce interest rates by another quarter point on Thursday, reflecting the faster-than-expected fallout in price growth across the bloc.
Prices in Ireland are still rising but the rate of growth, on an annual basis, has eased significantly as the energy price shock has subsided.
The latest CPI data indicate household electricity prices were down 8.3 per cent in the 12 months to the end of November while natural gas prices were down 8.2 per cent.
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Within the transport category, petrol and diesel prices were down 3.6 and 6.8 per cent respectively.
The divisions with the largest increases in the 12 months to November were restaurants and hotels (up 3.8 per cent) and alcoholic beverages and tobacco (up 3.5 per cent).
In its winter economic commentary, the Economic and Social Research Institute (ESRI) noted that while falling energy prices were exerting downward pressure on the rate of inflation, the restaurants and hotels sector remains the largest contributor to domestically-driven inflation.
Core or underlying inflation, which strips out potentially volatile food and energy prices, was 2 per cent in November, down from 2.3 per cent previously. On a monthly basis, consumer prices rose by 0.5 per cent.
Robert Purdue, head of dealing at global financial services firm Ebury, said: “With Ireland’s economy showing resilience through strong wage growth and robust domestic activity over the year, today’s inflation print provides a mixed picture as the year ends.
“Persistent inflation remains a challenge, while potential US tariffs could threaten Ireland’s export-driven recovery.”
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