Inflation rises to 1.1% in November

The annual rate of inflation rose to 1.1% in November, according to the CSO, but overall price pressures are expected to remain muted for some time.

There was an across-the-board rise in the price of living last month, with education, housing, fuel and other utility services all becoming more expensive, although there was a fall in the cost of food and clothing.

An average inflation rate of 1% is expected for 2019 as a whole, with that likely to rise to 1.3% next year.

“Prices, in general, are likely to be higher in a post-Brexit environment, though that is still more likely to be an issue for 2021 and beyond rather than a near-term worry,” says economist Alan McQuaid.

“Oil prices will be critical in determining the headline inflation outlook over the next 12 months or so, but they remain volatile and hard to predict given the uncertainty over Opec supply and geopolitical tensions in the Middle East.

“However, with the Irish economy continuing to grow strongly, the more immediate concern on the domestic inflation front centres around increased wage demands, particularly in the public service,” Mr McQuaid said.