Irish inflation falls to three-year low to 0.1%

Falling inflation was largely driven by continued drops in energy prices, which have fallen by 13.5% in the last 12 months

Wed, 30 Oct, 2024 - 12:39

Emer Walsh

Irish inflation has fallen to a three-year low with ongoing falls in energy costs leading to an almost 0% rise in general price levels.

Latest flash estimates from the Central Statistics Office (CSO) for the harmonised index of consumer prices (HICP) found that annual inflation rose by just 0.1% in October, falling well below the euro area average.

New data from the CSO also revised the headline rate of inflation in Ireland in September to 0%, down from an initial finding of 0.2%.

Falling inflation was largely driven by continued drops in energy prices, which have fallen by 13.5% in the 12 month period to October, despite a slight monthly increase of 0.3%.

However, food prices continue to rise, the CSO said, rising by 1.8% in the last year, with a slight hike of 0.4% in October.

Excluding energy and unprocessed food, inflation as measured by the HICP is estimated to have risen by 1.7% since October 2023, the CSO added.

The Irish rate will contribute to wider inflation data set to be published on Thursday by Eurostat, the statistics agency of the European Union.

Tomorrow's inflation readings will be considered carefully by the European Central Bank (ECB), with figures so far paving the way for a faster-than-expected cut to interest rates.

Following back-to-back rate cuts by the ECB, the regulator is expected to embark on four further rate deductions by March 2025.

Inflation as measured by the HICP does not include mortgage repayments, leading to the index falling at a faster rate than the Consumer Price Index (CPI).

According to the CSO's latest CPI, mortgage interest has risen by more than 11% in the twelve months since September 2023.

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