Inflation falls to 3.9% on lower fuel prices

The rate of inflation declined slightly in October as fuel prices continue to fall, according to figures published today by the…

The rate of inflation declined slightly in October as fuel prices continue to fall, according to figures published today by the Central Statistics Office (CSO).

The consumer price index (CPI) - which tracks prices of a range of consumer goods and services - grew annually by 3.9 per cent to the end of October.

While last month's rate continues the downward trend of September - when inflation was 4 per cent - it remains above than the 2.5 per cent rate for last year as a whole.

Transport costs, a significant element in the acceleration in inflation in the first half of this year which reached a high of 4.5 per cent in August, registered a fall of 1.5 per cent in October as oil prices continues to ease back to around $60 a barrel.

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The CSO notes that the drop in petrol and diesel prices was partially off-set by increases in taxi fares.

According to the CSO the most notable price changes in the year to date were increases in the cost of housing, water, electricity, gas and other fuels which are up by 18.4 per cent.

The cost of clothing, footwear products has declined 1.7 per cent in the year-to-date, while furniture, household equipment has also dropped, by 1.5 per cent.

Education costs are up 5.9 per cent, health costs have risen 4.3 per cent and the price of a meal at a restaurant or a night at a hotel cost on average 4.1 per cent more in October 2006 that the same month last year.