Rate of inflation remains steady

The rate of inflation remained steady last month, according to the latest data released by the Central Statistics Office. The annual rate of change in the Consumer Price Index (CPI) was 3 per cent in October, the same rate as in September.

The most notable price increases occurred in categories characterised by exposure to energy prices and public services. During October prices in the housing, water, electricity, gas and other fuels rose annually by 11.9 per cent.

Prices rose by 6.2 per cent in the health sector, by 6.1 per cent in the transport sector and by 4.8 per cent in the education sector. But in the clothing and footwear sector prices fell by 3 per cent on a year-on-year basis, while more modest price falls were experienced for furniture and household goods.

Fine Gael said inflation is rising faster in the Republic than in the rest of Europe. "Not alone is Ireland still the most expensive country in Europe, it is accelerating away from the rest," said Fine Gael deputy leader and finance spokesperson Richard Bruton.

Harmonised data for inflation across the EU is available up until September. The Harmonised Index of Consumer Prices (HICP) rose in September by 2.5 per cent across the EU and by 2.6 per cent in the euro zone. The index, which produces a slightly different measure from the CPI, rose by 2.8 per cent in the Republic.

Although higher than the EU average, the Republic's HICP inflation remains considerably lower than that recorded in several other EU states, including Latvia, Estonia, Greece and Spain.

Small business group Isme criticised the Government for contributing to inflation "It is ironic that while oil prices are starting to drop the biggest monthly increases recorded are, once again, in public utilities," said chief executive Mark Fielding.