Annual inflation rises to 1.7% in May

The rate of annual inflation has climbed for the second consecutive month as rising oil prices started to impact on the cost …

The rate of annual inflation has climbed for the second consecutive month as rising oil prices started to impact on the cost of transportation.

Consumer prices in May, as measured by the CPI, increased by 0.2 per cent  in the month compared to a decrease of 0.1 per cent in May of last year.

As a result, the annual rate of inflation rose to 1.7 per cent, up from 1.4 per cent in April.

The EU Harmonised Index of Consumer Prices (HICP) increased by 0.2 per cent in the month.

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This compares to a decrease of 0.2 per cent in May of last year and as a result, the annual rate of inflation as measured by the HICP rose to 2.1 per cent, up from 1.7 per cent in April.

The most notable changes in the year were increases in education which climbed 6.0 per cent, health  which rose 5.8, and transport which was up 3.5 per cent.

Inflation is still low by recent standards. The inflation rate averaged 3.5 per cent in 2003, 4.6 per cent in 2002 and 4.9 per cent in 2001.

It peaked at 7.0 per cent in November 2000.