Inflation ticks up to 2% in March

According to the CSO data, alcohol and tobacco saw the largest price increases over the last year, up 4.2%, followed by food and non-alcoholic drinks, up 3.3%

This is the first time that Irish annualised inflation has been at or above 2% since July last year when 2.2% was recorded.

The annual rate of inflation increased again during March to 2% driven by rising alcohol and food prices, new figures from the Central Statistics Office (CSO) shows.

This is the first time that Irish annualised inflation has been at or above 2% since July last year when 2.2% was recorded. During February, the inflation rate was 1.8%.

According to the data, alcohol and tobacco saw the largest price increases over the last year, up 4.2%, followed by food and non-alcoholic drinks, up 3.3%.

The CSO said the increase in food and non-alcoholic drinks was due to higher prices across a range of products such as milk, cheese, eggs, chocolate, confectionery, mineral waters, soft drinks, fruit, vegetable juices, and meat.

Consumer prices rose by 2.0% over the 12 months to March 2025https://t.co/FJaYsWdnCI#CSOIreland #Ireland #CPI #ConsumerPrices #Inflation #Deflation #Prices #BusinessStatistics #Business #BusinessNews #IrishBusiness pic.twitter.com/7XtwfXBUko

— Central Statistics Office Ireland (@CSOIreland) April 10, 2025

When prices for energy and food are excluded, inflation stood at 2.2% in the 12 months to March.

The only divisions to record a decline compared to last year was clothing and footwear, down 1.9%, due mainly to sales, and furnishings, household equipment, routine household maintenance, down 0.8%.

Trade war

The European Central Bank (ECB) is due to meet next week in order to discuss future interest rate cuts. The trade war, sparked by the US last week, led many to expect the ECB would continue to cut rates.

However, the decision by US president Donald Trump on Wednesday night to reduce his tariffs across the board down to 10%, except for China, will make the decision more difficult for the ECB. US steel and aluminium tariffs of 25% will remain unchanged.

Before Mr Trump’s announcement on Wednesday, EU member countries voted to approve retaliatory tariffs on $23bn in goods in response to his 25% tariffs on imported steel and aluminium. The EU, the largest trading partner of the US, described them as “unjustified and damaging”.

The tariffs are set to go into effect in stages, some on April 15 and others on May 15 and December 1. The US imports include maize, wheat, barley, rice, motorcycles, poultry, fruit, wood, clothing and dental floss, according to a document seen by Reuters.