Inflation fell 0.2% in July - CSO

Ireland's inflation rate fell by 0.2% last month, according to figures released today by the Central Statistics Office.

The inflation rate for the 12 months up to the end of July was 4.2%, down from 4.4% in the 12 months to the end of June.

Despite the fall, inflation in Ireland is still almost three times the European average.

SIPTU general secretary Des Geraghty welcomed the decrease, but said it does not reflect recent price rises in certain sectors.

“There are a lot of increases that have been agreed in recent times that will impact on that and I believe it’s going to drive inflation up in the period ahead,” he said.

“A lot of people will find that the figure on inflation doesn’t really match their own experience if they have to pay increased charges in the health services or in universities or, indeed, in any of the other areas where there have been special increases recently.”

The employers’ body IBEC said the decrease was expected, but added that it should not lead to complacency about prince increases.

Spokesman Aebhric McGibney said: “Unless action is taken to increase competition and solve the supply-side problems of the economy - for example by increasing the number of childcare places available and increasing the number of houses on the market - we think that the dangers of inflation will still be there.

"Inflation is always going to be a problem unless we tackle the underlying causes behind it."