CSO: Inflation drops to 0.3%

Broad forecasts of weak inflation movement for this year were strengthened yesterday with fresh CSO figures showing the annualised rate of inflation dipped from 0.4% to 0.3% in July.

Falling prices for goods such as clothing, footwear and household furnishings contributed to the fall, although the cost of eating and drinking out increased.

“With current low interest rates and import prices, the outlook for inflation remains weak. Nevertheless, a weaker euro may begin to put upward pressure on import prices in the second half of the year.