Eurostat confirms Irish annual inflation rate of 9.6% in July, unchanged from June

Irish economists have predicted since March that consumer price inflation would peak at over 10% this summer, however, they still see inflation running at elevated levels next year.

The harmonised rates have in the past been slightly higher than the consumer prices measure, which in Ireland's case was running at 9.1% in July. Picture: Damian Coleman

Eurostat has confirmed that Ireland's inflation rate was 9.6% in July, unchanged from the previous month, providing a glimmer of hope that the acceleration of price pressures is nearing a peak.

The new figures come from the European statistics office and are based on its harmonised measure of inflation which makes it easier to compare inflation rates right across the European Union.

The harmonised rates have in the past been slightly higher than the consumer prices measure, which in Ireland's case was running at 9.1% in July.

Irish economists have predicted since March that consumer price inflation would peak at up to 10% this summer, however, they still see inflation running at elevated levels next year.

Professor Kieran McQuinn at the Economic and Social Research Institute told the Irish Examiner that Irish inflation was likely to peak at around current levels.

It comes despite US bank Citi predicting yesterday that inflation in Britain could reach as high as 15% in the early months of next year in the absence of measures by the UK government.

Ireland's 9.6% rate is, however, still higher than the average for the eurozone as a whole which is running at 8.9%, according to the European statistics office. It is, however, lower than the 9.8% rate across the European Union.

The latest figures show that Estonia, at 23.2%, has the highest inflation rate in July closely followed by Latvia. The Baltic states are most exposed to the curtailment of Russian gas and fuel.

Germany's inflation rate in the month was running at 8.5%, up slightly from the previous month, and France's rate was running at 6.8%.

France and Malta had the lowest rate in the EU at 6.8%, the figures show.