Irish inflation at twice euro zone average

Inflation in the State remains the highest in the euro zone region, a new report has shown today.

Inflation in the State remains the highest in the euro zone region, a new report has shown today.

Irish inflation at 4.6 per cent is more than double the eurozone average of 2.1 per cent, data from EU statistics office Eurostat found.

A record drop in energy prices drove euro zone inflation down towards the European Central Bank's 2 per cent goal in April.

The data comes in the same week that a report showed the euro zone economy stagnated in the first quarter and will add to pressure on the European Central Bank, whose primary concern is to contain price pressures, to cut interest rates.

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Consumer prices rose by a smaller-than-expected 0.1 per cent from the previous month and at the same annual rate of 2.1 per cent earlier estimated by Eurostat.

Energy prices fell 2.9 per cent from the previous month, their largest monthly drop since Eurostat began calculating the harmonised index of consumer prices in January 1995.

The inflation rate remained above the ECB's self-imposed goal of 2 per cent for the ninth month running but fell from the 2.4 per cent rate reported in March.

The lowest rate of inflation was reported was observed in Germany at 1 per cent.