Summer sales pull inflation down in July

The consumer price index fell by 0.3 per cent in July giving an annual rate of inflation of 4

The consumer price index fell by 0.3 per cent in July giving an annual rate of inflation of 4.8 per cent, according to data released today by the Central Statistics Office.

The fall was expected due to a number of seasonal factors associated with summer consumption patterns. The most significant falls in the monthly index were in clothing and footwear, which fell by 8 per cent due to the impact of the summer sales.

The price of services rose with rises in the cost of package holidays, hairdressing and childcare.

Food prices also increased with higher prices recorded for restaurant meals, meat and soft drinks.

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Transport costs fell in July after a fall in the price of petrol, but car prices and motor insurance rose marginally.