Inflation remains flat during July despite drop in energy prices 

Food prices rose by 1.9% over the last 12 months. 

The rate of Irish inflation remained flat in July at 1.5% as energy prices continue to fall in comparison to last year, according to a flash estimate of the latest Harmonised Index of Consumer Prices (HICP).

HICP is a method of calculating inflation that allows the EU to compare inflation rates across the bloc. It is one of the data points used by the European Central Bank (ECB) when it comes to making interest rate decisions.

The rate of inflation in Ireland during June stood at 1.5% which compares to the 2.5% eurozone average.

According to the Central Statistics Office (CSO), energy prices are down 5.8% over the last 12 months while food prices are up 1.9%. Transport costs have gone up by 5.9% in the last 12 months.

The HICP excluding energy and unprocessed food is estimated to have gone up by 2.3% since July 2023.

Eurostat will publish the figures for the whole of the Eurozone, including Ireland, on July 31.

The ECB are due to meet in September to decide on whether to cut interest rates further. A cut at this meeting is expected with the potential for another reduction before the year is out.

It’s target is to get inflation across the eurozone down to 2% over a sustained period of time.