Ireland's inflation rises to 7.3% in April as price pressures continue to build

Figures suggest that inflation still has some way to go before reaching its peak

Both the Economic and Social Research Institute and the Central Bank have in recent weeks projected that inflation will peak at 8% or just above that level in the summer months, before easing somewhat later in the year.

Ireland's inflation rate rose to 7.3% in April from 6.9% in the previous month, according to new figures that confirm that price pressures have continued to build. 

The Central Statistics Office said that the 7.3% rate under the harmonised measure of inflation compares with the average of 7.5% across the whole of the eurozone. 

The figures suggest that inflation in Ireland still has some way to go before reaching its peak. Inflation across Europe and the US has climbed to their highest for many decades as the Ukraine war drives up energy and food prices.             

Both the Economic and Social Research Institute and the Central Bank have in recent weeks projected that inflation will peak at 8% or just above that level in the summer months, before easing somewhat later in the year.

However, inflation pressures will stay higher for longer through next year, according to the same forecasters.  

The harmonised figures are released by Eurostat ahead of the reports of consumer prices from EU states. However, the harmonised rates which make it easier to compare inflation across Europe have in the past tended to be in line with the consumer price trends.     

The Government has in recent weeks announced a new round of measures including a cut in the Vat rate to 9% for gas and electricity to tame inflation. The ESRI has said that the healthy state of the public finances would provide the room for further measures should the Government find they are required. 

The CSO said five eurozone countries had lower inflation than Ireland's 7.3% rate, while 13 countries posted higher rates. Estonia's 19% was the highest rate in April, and Malta's 4.9% was the lowest. 

"There was a similar result for the eurozone overall, with energy prices down by 3.7% in the month and up by 38% on an annual basis,” the CSO said.