The pace of annual price inflation slows to 1.5% in June

The CSO figures showed food prices fell marginally by 0.1% in June, but jumped 2% in annual terms. 

Falling energy prices continued to drive down consumer inflation in June, but grocery costs remain stubborn, according figures from the Central Statistics Office (CSO).

In its Harmonised Index of Consumer Prices (HICP), the CSO estimated annual consumer prices were 1.5% higher last month compared to 2% in the year to May, while prices crept up slightly in the month by 0.3%.

Energy prices dropped 5.6% in the period and fell 1% in the month, however, European energy markets are once again feeling the heat as contracts edge higher.

Separate data from LSEG, the benchmark contract for European wholesale gas, rose to €34.95 per megawatt hour (MWh) on Monday, up 55c. Cooler temperatures and larger supplies of liquefied natural gas coming from Asia are likely to be driving the prices upwards.

Meanwhile, the CSO figures also showed food prices fell marginally by 0.1% in June but jumped 2% in annual terms.

“The reality is that many prices are still rising and Ireland is an expensive country to live,” said Paul Walsh, a spokesman for Peopl Insurance.

The HICP, excluding energy and unprocessed food, is estimated to have increased by 2.3% since June 2023.

Elsewhere, the European Central Bank is due to meet again in the coming weeks to discuss its roadmap for interest rate cuts.

There are some expectations the regulator may wait until after its summer break in August to make any further reductions, as inflation remains sticky while wages in the eurozone grow.