Inflation returns for first time in six months

Consumer price index records drop of 0.5% in January and 0.5% rise on July 2016

The most significant monthly price changes were decreases in clothing and footwear (down 9 per cent) and furnishings, household equipment and routine household maintenance (down 3 per cent). Photograph: iStock

The most significant monthly price changes were decreases in clothing and footwear (down 9 per cent) and furnishings, household equipment and routine household maintenance (down 3 per cent). Photograph: iStock

 

Inflation has risen for the first time in the Irish economy in six months.

Consumer prices were down 0.5 per cent for the month in January as measured by the CPI (consumer price index) and 0.3 per cent higher compared to January 2016, and 0.5% higher than in July.

The most significant monthly price changes were decreases in clothing and footwear (down 9 per cent) and furnishings, household equipment and routine household maintenance (down 3 per cent).

There were increases in alcoholic beverages and tobacco (1.5 per cent) and food and non-alcoholic beverages (0.4 per cent).

The most notable changes in the year were increases in transport (2.8 per cent), restaurants and hotels (2 per cent), miscellaneous goods and services (2 per cent) and education (1.7 per cent).

There were decreases in furnishings, household equipment and routine household maintenance (down 5.5 per cent), in clothing and footwear (down 2.6 per cent), communications (down 2.6 per cent) and in food and non-alcoholic beverages (down 2.4 per cent).

According to the Central Statistic Office breakdown, the main drives of price growth for the year included rising petrol and diesel prices as well as an increase in air fares. This was partially offset by a reduction in the price of motor cars.

There were price hikes too in alcohol and food bought in pubs and restaurants as well as rises in the price of hotel accommodation.

In goods and services, the costs of insurance premiums grew in health, motor and home categories. This was slightly countered by falling prices for or appliances and personal care products.

There were lower prices across food, with jam, honey, chocolate, confectionery, bread, cereals, vegetables, milk, cheese and eggs of note.

There was a dip too in the price of games, toys and hobbies and recording media.

Average prices measured by the EU Harmonised Index of Consumer Prices (HICP) increased by 0.2 per cent compared with January 2016.