Annual inflation at 3% in March

Consumer prices rose 3 per cent in the year to March, new data from the Central Statistics Office showed today.

On a monthly basis, prices were 0.9 per cent higher, driven by increases the cost of clothing and heating oil and mortgage interest rises.

There was further recovery from post-Christmas, which pushed the price of clothing and footwear higher over the month.

Driving the yearly increase in the consumer price index was a 12.5 per cent rise in housing, water, electricity, gas and other fuel. When energy products were taken out of the index, inflation fell to 0.7 per cent in the month, and 1.9 per cent on an annual basis.

Communications rose by 4.1 per cent year on year, while there was a fall recorded in the price of clothing of 2.6 per cent and a 2.3 per cent drop in furnishings and household equipment.

Prices at restaurants and hotels fell by 1.3 per cent over the year, while a decrease in the price of alcohol and tobacco of 0.8 per cent was attributed to lower prices for beer, wine and spirits sold in off-licences and supermarkets. Excluding tobacco, the consumer price index rose by 1 per cent in the month and by 3.1 per cent year-on-year.

The EU harmonised index of consumer prices, which excludes a number of measures including mortgage interest, rose by only 1.2 per cent. However, this showed an increase in pace of growth from the previous year, when prices rose by only 0.1 per cent compared to February.

Year on year, prices were up 1.2 per cent according to the HICP.

On a yearly basis, the annual rate of inflation for services was 3.9 per cent in the year to March. Goods increased in price by 2 per cent over the year.