Irish inflation rate slows to 1.2%

Ireland's inflation rate declined for a second month in October, helped by lower energy prices.

The annual inflation rate eased to 1.2 per cent in October, falling from 1.6 per cent recorded in September.

This is the lowest annualised rate recorded since November 2010.

The rate of price hikes also eased month on month, with prices falling by 0.1 per cent last month compared with September. This compares to an increase of 0.3 per cent the same time last year.

The most notable changes in consumer prices in October, as measured by the consumer price index (CPI), were in transport (-2.7%) and education (+4.6%).

The most significant changes in the year were increases in education (+6.7%), transport (+5.8%), and alcoholic beverages and tobacco (+3.5%). There were decreases in communications (-3.4%) and housing, water, electricity, gas and other fuels (-3.3%).

Energy remains the biggest contributor to the overall rate with the annual increase in motor fuels running at 11.5 per cent according to Goodbody Stockbrokers, although fuel prices did decline by 1.3 per cent month on month. Household energy bills increased by 9 per cent annually.

The stockbroker also noted the rising costs of health and education, largely due to budgetary adjustments. The cost of education rose 6.7 per cent on an annual basis driven by a 6.5 per cent increase in third level costs. Health insurance costs rose 16 per cent  annually also reflecting government policy in this area.