Inflation may hit 1.4% next year

PRICES are expected to continue rising and could be up as much as 1.4% annually by the end of 2011.

Figures from the Central Statistics Office (CSO) show consumer prices were up 0.7% last month and up 0.2% in the year, the first annual increase in the rate of inflation since December 2008.

The increase was driven by a 10% hike in mortgage interest costs, which are now up just over 24% in the year. Cutting out the mortgage component, prices rose by a more modest 0.2% monthly.