Factory gate prices have fallen by 10.6 per cent since June 2002, indicating consumer price inflation is likely to fall in the coming months.
The wholesale price index shows factory gate prices fell by 1.7 per cent in June. So far this year the year, the index for export sales dropped by 13.1 per cent and the index for home sales decreased by 0.4 per cent, according to the figure released by the Central Statistics Office.
Commenting on the fall in prices, IBEC's chief economist, Mr David Croughan, said that reduction in prices reflected the low rate of global inflation and the strength of the currency and would ensure even lower consumer price inflation over the coming months.
Mr Croughan said Irish manufacturers continued to be under fierce competitive pressures owing to higher costs and our their exposure to global markets.
"These changed external trading conditions emphasised the need to focus more than ever on restoring Irish competitiveness as rapidly as possible to prevent further avoidable job losses, Mr Croghan concluded.