The latest figures released by the Central Statistics Office (CSO) this morning shows that inflationary pressures are still fairly weak, with the headline inflation rate remaining in negative territory.
Prices were down 0.2% in the month in October, giving a headline annual inflation rate of -0.2% as against -0.3% in September and zero in August.
The headline inflation rate has been negative in ten of the last eleven months. Meanwhile, the HICP rate, the measure used for EU comparative purposes, was down 0.3% in the month, leaving the annual inflation rate on this basis unchanged from September at zero.
The main monthly changes affecting the CPI in October were decreases in the price of petrol, diesel and airfares. The cost of hotel accommodation was also lower in the month. However, motor insurance premiums were higher than in September as was education due to the extra costs associated with participating in third-level studies.
According to Merrion Stockbrokers, "Despite the booming Irish economy, inflationary pressures as measured by the CPI are in our view likely to remain fairly well contained in the immediate future, mainly because of lower oil prices. But the cost of services like insurance and education look set to continue to rise."
They added, "Ireland’s average inflation rate was 0.2% in 2014, down from 0.5% in 2013, and we now see a negative rate of -0.3% for 2015 as a whole. Only a modest CPI rise is forecast for 2016."
Source: www.businessworld.ie
