Inflation falls to 3-year low

Inflation levels fell to a three-year low in August, with the annual rate now expected to be below 1% come the end of the year.

Consumer prices as measured by the CSO grew by 0.1% in August, when measured on a month-by- month basis and were up by 0.2% on a year-on-year basis; the latter measure the lowest level of inflation since July 2010. August’s reading, though not unexpected, also followed two consecutive months when the annualised rate was 0.7%.

On an annual basis, the notable rises were 5.4% in alcohol and tobacco prices, 4.8% in education and 1.6% in restaurant and hotel prices; while clothing and household furnishing costs declined.