Service sector continues to pass on costs to consumers

the service industry remained in expansion territory last month due to demand buoyancy which led to a strong increase in new business.

Service businesses continued to pass on operating costs to consumers through higher selling prices last month as inflation rose to 4.9% in August, compared to 4.6% the previous month.

Inflation has cooled from levels recorded last year but Irish service business raised their selling prices at a faster pace midway through the August quarter despite input costs easing for the second month in a row to the slowest in 28 months, according to the a leading survey.