Annual inflation remains flat in May, new figures show

Falling energy prices countered by rising transport costs, CSO data shows

Food and drink prices increased by 2.6% in May compared to last year. 

Annual inflation remained flat at 2.6% during the month of May, with falling energy prices being countered by rising transport and recreation costs, new data from the Central Statistics Office (CSO) shows.

According to the data, in the 12 months to the end of May, energy product prices have dropped by 3.6%. Clothing and footwear also saw a significant drop, down 6.3% year-on-year.

However, prices continue to increase in other areas. The most significant was seen in transport costs, which saw an increase of 6.7% during May, followed by restaurants and hotels, which saw prices increase by 4.7% compared to the same period last year.

Recreation and culture prices also increased by 4.4%.

Food and drink prices increased by 2.6% during the course of the year, with alcohol and tobacco costs up 3.5%.

The headline rate of inflation remains unchanged from April. Core inflation — which excludes volatile categories such as energy and food — stood at 3.5% during May, unchanged from April.

Additional CSO data on grocery staples show the average cost of a 2.5kg bag of potatoes has increased by 59c to €4.04 compared to what they were last year. The cost of a kilo of cheese also increased by 5c.

Some decreases were recorded. A plain white sliced pan is now 6c cheaper than May last year, with a two litre carton of milk now 3c cheaper.