Inflation remains steady at 2.2% as price growth continues to slow

Inflation excluding energy and unprocessed food increased at a faster pace at 3.1%

The largest price increases were seen in transport, which rose by 5.5%, underpinned by increased petrol and diesel costs

Irish Inflation remained static last month with prices rising by just over 2% in the year, latest data from the Central Statistics Office (CSO) show.

The Consumer Price Index in July stood at 2.2%, unchanged from the previous month as price growth continues to slow across the Irish economy. 

Drops in energy prices from their 2022 high contributed largely to slowing price rises, with inflation excluding energy and unprocessed food rising at a faster pace at 3.1%

The largest price increases were seen in transport, which rose by 5.5%, underpinned by increased petrol and diesel costs, followed by hotel and restaurants, which rose by 4.3% on the back of rises in alcohol prices and food consumed in licensed premises.  

Clothing and footwear saw the largest decrease in annual prices, falling by just under 5% compared to July 2023, while furnishings, household equipment and routine household maintenance dropped by 1%.

Compared to June this year, consumer prices rose 0.2%, underpinned by a 3% rise in recreation and culture costs as package holidays increased, coupled with a nearly 2% hike in transport costs. 

However, these were offset by the 6.2% decline in clothing and footwear in addition to a small 0.3% decline in the miscellaneous goods and services sector.

The CSO also measures national average prices for certain goods, with statistician, Anthony Dawson revealing: “There were price increases in July 2024 for a 2.5kg bag of potatoes (+66c), Irish cheddar cheese per kg (+10c), Spaghetti per 500g (+6c), and a pound of butter (+3c)."

Meanwhile, there were decreases in the price of an 800g loaf of white sliced pan, Mr Dawson added, which fell by 3c, while an 800g loaf of brown sliced pan dropped by 2c, and two litres of full-fat milk fell by 1c when compared with July 2023.

The harmonised index of consumer prices (HICP) stood at 1.5% in July and was notably lower than the Consumer Price Index as it does not include mortgage repayments.