Living costs may jump after slight dip

THE cost of living fell slightly in December, in spite of increases in fuel prices and mortgage repayments. Inflation, as measured by the Consumer Price Index, slipped to 2.5% in December from 2.6% in November.

Yesterday’s figures from the Central Statistics Office (CSO) show the cost of food, drink and clothing decreased in December, offsetting rises in the cost of electricity, gas, heath services and mortgage repayments.

Housing, water, electricity and heating costs rose by 10.8%, health costs rose by 5.8%, education by 4.9%, restaurants and hotel prices increased by 3.2%, and transport costs rose by 3.1%.