Winter sales herald fall in monthly inflation rate

A sharp fall in the cost of clothing and footwear and lower prices for durable consumer goods because of the winter sales led…

A sharp fall in the cost of clothing and footwear and lower prices for durable consumer goods because of the winter sales led to a better-than-expected inflation performance in January, according to figures released yesterday, writes Jane O'Sullivan.

Irish consumer prices fell by 0.6 per cent last month as the cost of clothing and footwear dropped by 9.7 per cent on December's levels, while the price of durable household goods fell by 2.6 per cent.

"The winter sales swamped everything else," said CSO senior statistician Mr Kevin McCormack. Inflation was 1.8 per cent higher than in January 1997, slightly above the last yearon-year increase of 1.6 per cent recorded in November.

On an EU harmonised basis, prices fell by 0.7 per cent in January and increased by 1.2 per cent on last year.