Inflation rate increases to 2.7%
The Central Statistics Office said yesterday that prices were 0.1% higher in October than September, with large increases in the costs of electricity, gas and oil recorded in the month.
The annual rate of inflation, which had fallen to 1.4% earlier this year, stands at 2.7%.
The monthly figures show education costs rose by 5.6% in October last year due to an increase in third-level tuition and maintenance fees. Health costs were 5.8% higher because of hikes in medial bill, while fuel costs went up 7.4% in October as gas and electricity prices were higher.
Small business body ISME said while the headline rates of economic growth, employment and Exchequer finances are positive, they are masking cost environment, which is soaring.
Its chief executive said once again it is "government promoted cost increases that are continually underpinning the inflation rate, particularly in health, education and energy."
The figures also show that restaurant and hotel costs were 4.5% higher and alcohol prices increased by 3.4%. According to the Labour Party, the Government has failed to prevent price hikes in the leisure and hospitality sector, which are turning foreign visitors away from Ireland.
"How can the Minister for Tourism John O'Donoghue deny that Ireland is an expensive country in the face of these facts? Tourism is such a vital industry in Ireland that we cannot afford to scare people off with our high prices," said Labour consume affairs spokesperson Kathleen Lynch.
"Our price levels across a range of sectors show no sign of adjusting themselves to average European levels. We risk losing out to cheaper destinations, especially as tourists from mainland Europe turn their attention to the new, and less expensive, EU member states in Central and Eastern Europe." IIB bank economist Austin Hughes said though inflation had ticked up in recent months, he expected it to settle down at the around the current rate.
He said the upcoming Budget should not see too much added to the cost of living as the public purse looks healthy.
"On balance, we think the emerging evidence suggests that domestic price pressure may be set to edge higher, but as the US Federal Reserve said of US inflation, we think the situation remains well contained," said Mr Hughes.
There were, however, decreases in October with the price of clothing and footwear falling 2.5% a decrease of 0.5% in food bills.
June 2.3%
July 2.7%
August 2.6%
September 2.5%
October 2.7%
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