Inflation cools to 3.6% amid falling energy prices

Food prices are estimated to have grown by 0.2% in the last month and increased by 6.7% in annual terms.

Irish inflation fell dramatically to 3.6% in October, compared to 5% in the previous month, according to an EU-wide measure used by the Central Statistics Office (CSO).

The decline was driven by a fall in energy prices, showed the latest Flash estimate for the Harmonised Index of Consumer Prices (HICP).

Energy prices are estimated to have fallen by 0.3% in the month and decreased by 4.2% over the 12 months to October.

European wholesale energy prices are set to fall even further as the price paid for the delivery of gas in November dropped to €49 per megawatt hour late in the session, representing a 4.5% decrease. The price for gas set to be delivered in January dropped by almost 5.5% as well.

Meanwhile, diplomatic efforts in the Middle-East contributed to 2% fall in crude oil prices earlier this week.

However, the figures from the CSO showed shoppers are still paying high prices for food.

Food prices are estimated to have grown by 0.2% in the last month and increased by 6.7% in annual terms.

High food and fuel prices have burdened households and business across the country this year, including husband and wife Mark and Patricia Gannon, who operate the Courtmacsherry Sea Angling Centre, Woodpoint House B&B, and Atlantic Whale & Wildlife Tours.

“Every time I go to the supermarket, prices are going up and up and up,” Mrs Gannon told the Irish Examiner. Meanwhile, “fuel is the big one” for the angling and whale-watching side of the business said Mr Gannon, as diesel is needed to keep his boats on the water.

Excluding energy and unprocessed food, the HICP is estimated to have risen by 4.6% since October last year.

The figures also showed transport costs have also risen by 1.2% in the month and increased by 2.1% annually.