Annual inflation in OECD area at 4.8% in July

Annual inflation in the OCED area continues to rise, increasing to 4.8 per cent in July.

This compares to 4.4 per cent for the to June, a month-on-month increase of 0.4 per cent.

Energy prices were one of of the worst culprits, rising 22.5 per cent year on year, compared with a 19.3 per cent hike in the year to June. Food prices rose 7.2 per cent for the period.

When food and energy were discounted, consumer prices rose by 2.3 per cent in the year to July, compared with 2.2 per cent in June.

Over the year, prices in Ireland rose by 4.4 per cent, with food increasing 6.8 per cent and energy costs rising 13.9 per cent. This was less than the OECD total of 4.8 per cent, and the average rate for the G7 countries.

The Harmonised Index of Consumer Prices (HICP) was up 3.6 per cent in Ireland, slightly lower than the euro area figure of 4.1 per cent and the EU average of 4.4 per cent.

Prices in the UK increased 4.4 per cent over the year, while the US saw its inflation rate rise to 5.6 per cent for the 12 months.

Japan had the lowest rate, at 2.3 per cent year on year, while Iceland's 13.1 per cent inflation topped the table.