Irish inflation rate slows to 0.8%

Consumer prices fell 0.5 per cent in November, the biggest fall since January 2010, as transport costs fell due to lower petrol and diesel prices.

The inflation rate eased to 1.6 per cent from 2.1 per cent, according to the latest figures published by the Central Statistics Office today.

Based on an Irish measure, which includes mortgage interest costs, inflation slowed to annual 0.8 per cent from 1.2 per cent in the previous month.

November was the third month in a row that the inflation rate declined.

The most notable changes in consumer prices in November, as measured by the consumer price index, were in transport, which declined 1.9 per cent, and energy prices including electricity and gas, which increased 0.3 per cent.

The most significant changes in the year so far were increases in education (+4.7 per cent), transport (+4.1 per cent), and alcoholic beverages and tobacco (+3.5 per cent).

There were notable reductions in communications (-4.4 per cent) and housing, water, electricity, gas and other fuels (-3.3 per cent).

Continued weak consumer demand will put downward pressure on prices in the months ahead, financial services firm Glas Securities said.

"However, indirect tax hikes will add to the CPI in the coming months, but in overall terms it is very much a picture of subdued inflationary pressures, which will help ease the pain to some degree on the household sector."