Rising food costs see inflation climb to 1.6%

Food prices continue to outpace inflation, with a 0.3% rise in the past month contributing to a 4.3% hike since June 2024

Euro area inflation is likely to have quickened for the first time since the start of the year in June, though it matched the European Central Bank’s goal in the process, according to economists. 

Irish inflation climbed upwards in the 12 months to June 2025 with continuing food price hikes putting growing pressure on consumer costs. 

New flash figures released by the Central Statistics Office (CSO) on Monday found that annual inflation rose by 1.6% in June when measured using the EU harmonised index of consumer prices (HICP). 

This compares with a 1.4% figure for the previous month and an annual increase of 1.9% for the overall eurozone in the same period. Energy prices are estimated to have fallen by 0.2% in the month, while decreasing by some 1.8% annually. 

Meanwhile, food prices continue to trend upwards, with a 0.3% rise in the past month contributing to a 4.3% hike since June 2024. Excluding energy and unprocessed foods, Irish inflation using the HICP is estimated to have risen by 1.9% since June 2024.

The consumer price index (CPI) is the official measure of inflation in Ireland, while the HICP is an index of consumer prices that has been harmonised to allow for comparisons across euro area countries. While the CPI includes mortgage rates in its basket of goods, the HICP does not.

Euro area inflation is likely to have quickened for the first time since the start of the year in June, though it matched the European Central Bank’s goal in the process, according to economists. 

Having been in retreat since January, consumer prices rose 2% from a year ago this month, up from 1.9% in May, a Bloomberg survey showed.

An underlying measure that strips out volatile elements like energy is tipped to remain at 2.3% when Eurostat publishes data on Tuesday.