Inflation falls to 0.7% in year to August

Higher rents and increases in home heating oil push price growth

There was a 4.1%  fall in the price of furnishings, household equipment and items connected with household maintenance in the year to August. Photograph: iStock

There was a 4.1% fall in the price of furnishings, household equipment and items connected with household maintenance in the year to August. Photograph: iStock

 

Growth in consumer prices eased slightly in August, advancing by 0.7 per cent mainly on the back of higher rents and an increase in the price of home heating oil, electricity and gas.

The monthly consumer price index, issued by the Central Statistics Office, showed prices in August rose by just 0.3 per cent compared to July. In the year to July inflation was 0.8 per cent.

As with previous surveys this year, notable changes came in the housing, water, electricity, gas and other fuels sector, with prices rising 6.4 per cent on the year.

The prices of alcoholic beverages and tobacco advanced 2.9 per cent in the same period, primarily driven by higher prices for tobacco products, while restaurant and hotel prices increased 2.1 per cent.

On the other end of the scale there was a 4.1 per cent fall in the price of furnishings, household equipment and items connected with household maintenance.

Food and non-alcoholic beverages also saw price drops as that sector fell 2.6 per cent due to lower prices across a range of products including vegetables, bread, meat, jam and chocolate.

The monthly upward trend in inflation was helped by the clothing and footwear sector, in which prices rose 5.4 per cent due to a recovery in sales.

There were monthly decreases in transport prices as a result of a reduction in air fares, while alcoholic beverages were also 0.04 per cent cheaper compared to July because of lower prices for wine sold in supermarkets and off licences.