Inflation rises for the second month in a row

Prices are 6.4% higher compared to September 2022

Annual inflation in September stood at 6.4% — up from the 6.3% recorded in August. 

Annual inflation in Ireland has risen for the second month in a row, with prices 6.4% higher compared to September 2022.

During August, annual inflation was recorded at 6.3% after it dropped to 5.8% in July. September marked two years of inflation being above 5%.

According to data from the Central Statistics Office (CSO), core inflation — which excludes volatile food and energy prices — rose by 6.1% in the year to September. This is down from the August rate of 6.4%.

The highest inflation rate over the last year was seen in housing, water, electricity, gas and other fuels, which increased by 16.9%. This was followed by recreation and culture, which rose 9.4%.

CSO statistician Anthony Dawson said electricity costs increased by 36.6% in the year, with gas prices up 23.5%. On top of this, mortgage repayments were up 49.5% in the year to September.

Consumer prices rose by 6.4% over the 12 months to September 2023https://t.co/zvMtIt4t8Q#CSOIreland #Ireland #CPI #ConsumerPrices #Inflation #Deflation #Prices #BusinessStatistics #Business #BusinessNews #IrishBusiness pic.twitter.com/ukxBX1BPPU

— Central Statistics Office Ireland (@CSOIreland) October 12, 2023

“The annual change in recreation and culture costs reflects a rise in prices in package holidays, up 39.4%, and pets, related products and services up 13.3%,” Mr Dawson said.

Education was the only division to record a decrease in prices, dropping 6.3%.

Food prices

The CSO also published the national average price of a number of items.

According to Mr Dawson, the average cost of a sliced pan of white bread was €1.65 in August, up 4c on last year. Spaghetti is 16c more expensive at €1.48, while a two-litre carton of milk is 11c more expensive, at €2.19.

The European Central Bank is due to meet at the end of this month to discuss whether or not another interest rate hike is warranted. 

The ECB raised rates again last month but it is expected to announce a pause in rate rises when it meets on October 26.