Annual inflation rate falls to 1.7% in May

Areas which saw the largest price increases over the last 12 months were food and non-alcoholic drinks, up 4%, while alcoholic drinks and tobacco saw a 3.1% increase

The cost of transport and clothing saw the largest price declines in May. 

The annual rate of inflation dropped to 1.7% during May, down from 2.2% the prior month, as transport as well as clothing and footwear costs declined, new data from the Central Statistics Office (CSO) shows.

The areas which saw the largest price increases over the last 12 months were food and non-alcoholic drinks, up 4%, which was primarily due to higher prices across a range of products such as meat, chocolate and confectionery and milk, cheese and eggs.

Alcoholic drinks and tobacco also saw a 3.1% increase.

Prices in restaurants and hotels increased by 2.8%, with the CSO saying this was primarily due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, and cafes. This increase was partially offset by a reduction in the cost of hotel accommodation.

Health costs were also up 2.8%.

The divisions to record the largest declines year-on-year were transport, down 2.4%, and clothing and footwear, down 1.9%.

The decline in transport costs was largely due to lower prices for airfares, petrol and diesel. This reduction was partially offset by higher prices for the maintenance and repair of personal transport equipment.

According to the data, excluding energy and unprocessed food, inflation grew by 1.9% in the 12 months to May.