CSO estimates inflation rise for August as food prices remain high

The Central Statistics Office said that as these are flash estimates, they are subject to revision when the final results are published

Annual food price inflation is running at 7.7% while energy prices rose by 3.4%. 

The annual rate of inflation rose in August to 4.9% as core inflation remains quite high, new flash estimates from the Central Statistics Office (CSO) show.

According to the EU Harmonised Index of Consumer Prices (HICP) flash estimate, prices in Ireland rose by 4.9% in the year to August and by 0.5% compared to July.

The annual rate of inflation in Ireland actually increased from 4.6% recorded in July with food prices increasing by 7.7% in the year to August while energy prices increased by 3.4%.

However, energy prices are likely to keep going up as an excise duty cut is due to expire at the start of September. 

This means fuel prices will increase by 7 cents for petrol and 5 cents for diesel. The Government will fully restore the rates on October 31, with a final increase of 8 cents for petrol and 6 cents for diesel.

Transport costs have actually decreased by 1.5% over the last year.

Core inflation — which excludes volatile items such as food and energy — rose by 4.8% since August last year. This is a key metric used by the European Central Bank to assess whether more rate increases are needed but it has remained stubbornly high.

The HICP is a metric that allows organisations to compare inflation in different eurozone countries. Across the eurozone, inflation is running at 5.3%.

The CSO said that as these are flash estimates, they are subject to revision when the final results are published.