Inflation falls, but fuel costs may rise

Official inflation figures published yesterday show that prices of goods in the economy continued to fall, but there were signs that the dampening effect of the collapse in oil prices is coming to an end.

The CSO consumer price figures for May also starkly revealed that private rents continue to soar, reflecting a chronic shortage of housing accommodation across many parts of the country as the economic recovery takes hold.

Some analysts believe the surge in private sector rents could be a huge political headache for the Coalition in the run-up to the election in less than a year’s time.