Taoiseach welcomes 1.3% annual inflation rate

Figures released this morning show that the annual inflation rate fell to 1.3% in March.

The Central Statistics Office said today consumer prices rose by 0.4% on the month, compared to an increase of 0.8% in March last year, with the result that the annual rate of inflation fell to 1.3%, down from 1.7% in February.

The Taoiseach described the decline from 1.7% in February as "especially encouraging, particularly since it continues a sustained downward trend evident over previous months".

He said that along with recent positive indicators on employment and economic growth the lower inflation rate set "grounds for growing economic confidence over the period ahead".

The Taoiseach added that the rate this time last year was 4.9%, followed a peak in the last February of 5.1%.

"Today's figure, is the lowest since July 1999 and it confirms the success of the Government's overall counter-inflationary policies," he said.

According to the statistics office the most notable changes on the month were Clothing and footwear prices, which rose 2.3% due to a further recovery in prices after the end of the winter sales.

Housing, water, electricity, gas and other fuels rose 0.8% on the month and prices of alcohol and tobacco rose 0.4%, due to a rise in cigarette prices.

For the year the biggest change was an increase in health at 6.4%, education at 5.9%, communications at 5.1% and prices of alcohol and tobacco rose 4.2%.

The CSO said that the EU Harmonised Index of Consumer Prices increased by 0.4% in the month. This compares to an increase of 0.7% in March of last year and as a result the annual rate of inflation as measured by the HICP fell to 1.8%, down from 2.2% in February.