Consumer prices decrease by 0.2 per cent in September

Irish consumer prices decreased by 0.2 per cent in September, according to data from the Central Statistics Office (CSO).

The most significant monthly price changes were decreases in transport, which fell 1.8 per cent due to a fall in airfares and lower petrol and diesel prices. Prices for clothing and footwear increased on a monthly basis due to a recovery in prices after the summer sales.

However, steep price increases have been recorded across a number of categories including education, alcohol, tobacco, restaurants and hotels in the last 12 months.

The annual inflation figure points to a 4.5 per cent rise in education prices, while hotel prices of alcoholic beverages and tobacco rose 2.8 per cent. The CSO said a 4.1 per cent rise in the price of drink and tobacco reflected higher alcohol prices in off licences and supermarkets. Clothing and footwear prices dropped 2.6 per cent in the 12 month period between September 2013 and last month.

Merrion Stockbrokers economist Alan McQuaid said domestic inflationary pressures in Ireland are likely to remain fairly well contained for some time to come, despite the booming economy.

“However, we do expect an uptick in the coming months, with a strengthening labour market likely prompting a gradual rise in wages, and the weakening euro set to push up import prices,” he added.