Wholesale electricity prices saw a monthly decrease but are still higher than in 2021

Overall, wholesale prices for goods used in manufacturing increased at an annual rate of just over 7% May.

The wholesale price of electricity used by manufacturing dropped 34% in May compared with April, but is still 48% higher than prices in May 2021.

Latest figures from the CSO showed wholesale energy products prices decreased by 28% compared to April 2022, mainly driven by the decrease in wholesale electricity prices.

Energy prices have fluctuated considerably over the past year. For example, the price of electricity for factories in April was 155% higher compared to the same period in 2021.

There could be further energy price hikes in the future though. European natural gas prices edged higher as traders weighed persistent Russian supply cuts against signs that high fuel costs are curbing industrial demand.

Prices are still about eight times higher than the seasonal average, causing industry to slash consumption.

Prices have steadied after being roiled over the past week when Russia further tightened its squeeze on gas flows to the continent, a move that prompted some nations to resort to coal for power.

Italy, one of the biggest buyers of Russian gas, is temporarily increasing coal-fired generation, joining nations such as Germany, Austria and the Netherlands in reviving mothballed power stations or removing limits on the dirtier-burning fuel.

Meanwhile, Irish manufacturing wholesale prices for other energy products continued to increase. Fuel wholesale prices increased by almost 9% in May compared with April’s figures, and the wholesale price of petrol is 24% higher than prices in May 2021.

Diesel also saw an increase in monthly wholesale price for May as it increased by 2% and is 27% higher compared with May 2021.

Overall, wholesale prices for goods used in manufacturing increased at an annual rate of just over 7% May. In April, this annual increase was slightly over 5%.

Wholesale prices were increased for other wholesale manufacturing goods too. Insulating materials was one of the main construction products that saw the largest monthly increase in wholesale price in May. These materials went up 4% in May, compared with April, and increased at annual rate of 19%.

Other large annual increases in building materials for manufacturing were in reinforcing metal which went up 66%, structural steel which went up by 41%, and rough timber which went up 29%.

Additional reporting by Bloomberg