Costs of mortgage interest stand out with rise of 1.9% during Covid period

Other types of housing costs have continued to fall in that period, according to the latest Consumer Price Index. 

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Bank mortgage interest rates stand out in official figures as one of few items to have risen significantly in the past year since the onset of the Covid pandemic, even as many retail prices fall across the economy. 

The CSO figures show that the costs of mortgage interest have risen by a significant 1.9% in February from February 2020, on the eve of the breaking of the Covid health crisis, even though prices for all goods and services across the crisis-hit economy fell by 0.4%.

Other types of housing costs have continued to fall in that period, with private landlord rents down by 2.5% in the year, although local authority rents rose 1.5% in the same period, according to the latest Consumer Price Index. 

Other household costs, including the cost of electricity, are showing signs of rising sharply after the big jump in global crude oil prices. 

Electricity costs have climbed 3.8% from February last year, and the cost of bottled gas was up by just over 6%, although the cost of natural gas has fallen by 5.9% over the same period.

Across the economy, the prices of the 51,000 items of both goods and services the CSO tracks on a monthly basis have continued to fall. Most notable is the sharp fall of 6.8% in the prices of clothing and footwear in the past year.

Overall, the prices of goods have fallen 2.8% since February 2020, while the prices of services have risen by 1.1%.