Annual rate of Inflation falls slightly in May

The annual rate of inflation as measured by the Consumer Price Index fell slightly in May from 4.8 to 4

The annual rate of inflation as measured by the Consumer Price Index fell slightly in May from 4.8 to 4.7 per cent according to the latest figures from the Central Statistics Office.

Consumer prices increased by 0.5 per cent in the month but this was slightly lower than the monthly increase for May of last year and, as a result, annual inflation fell marginally, the CSO said.

The EU Harmonised Index of Consumer Prices (HICP) rose by 0.6 per cent in the month, and was 5 per cent higher than May 2001. This is the same as the annual rate recorded in April.

Ireland’s inflation rate remains the highest in the euro zone and well ahead of the EU average of 2.4 per cent recorded at the end of April.

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The most significant monthly price changes were increases in transport (+1.3 per cent), communications (+1.2 per cent) and health (+1.1 per cent). Transport costs rose in line with higher petrol prices and higher telephone rental charges pushed up communications costs.

The most notable changes in the year were increases in services (+10.8 per cent), health (+10.2 per cent) and education (+9.7 per cent).