Inflation hits 3.7% as pressure on energy supply drives prices up

Highest annual rate of inflation observed in Consumer Price Index since January 2024

Inflation continues to rise, hitting 3.7% last month, the Consumer Price Index published on Thursday said, with pressure of fuel supplies pushing prices higher.

Inflation continues to rise, hitting 3.7% last month, the Consumer Price Index published on Thursday said.

The Consumer Price Index of 3.7% between April 2025 and April 2026, higher than the 3.6% recorded in the 12 months to March 2026. This is the highest annual rate of inflation observed in the CPI since January 2024, when the rate of inflation was 4.1%.

Consumer prices rose by 0.5% in the month between March 2026 and April 2026.

The national average price for a litre of diesel in April 2026 was €2.17, an increase of 45c on the same time in 2025. Petrol prices increased by 16c to €1.91 a litre. "The collection of prices for April 2026 took place between April 13 and April 23 which means that some fuel prices were collected before the introduction of additional Government measures on fuel costs," said CSO statistician Anthony Dawson. 

Deloitte Ireland chief economist Kate English said Thursday's inflation figures aren’t good news for consumers, and noted US inflation this week hit its highest level since May 2023. "What is clear from the Consumer Price Index published today is that the pressure on energy supply chains is driving prices up. This will be something the European Central Bank monitors closely one month out from its next meeting on interest rates," said Ms English.

“While overall inflation in 2026 is not anticipated to reach levels recorded in 2022, upward pressure is likely to remain on prices. Our inflation rate will inevitably be tied to the length of this ongoing conflict in the Gulf region and the impacts of the aftermath.”

Thomas Pugh, chief economist at audit, tax and consultancy firm RSM Ireland said Ireland remains in a stronger position than many other European economies, with plenty of fiscal space for Government to extend supports to households and businesses if necessary. "What’s more, the labour market remains robust which will support wage growth and help the domestic economy to keep growing despite elevated inflation.

“The bottom line is that the Irish economy is entering the crisis in a much stronger position than the UK and other European economies which should keep growth ticking along even as energy prices eat into real incomes and the ECB hikes land in the coming months.”

The price divisions with the largest price increases in the year to April 2026 were Education Services (+8.9%), Housing, Water, Electricity, Gas & Other Fuels (+8.1%), and Clothing & Footwear (+7.9). Excluding Energy and Unprocessed Food, the CPI grew by 2.6% in the 12 months to April 2026.

The only price division to record a decline compared with April 2025 was Furnishings, Household Equipment & Routine Household Maintenance (-0.6%).

Consumer prices rose by 0.5% in the month between March 2026 and April 2026. The divisions with the largest rises in the month were Information & Communication (+1.6%) and Housing, Water, Electricity, Gas & Other Fuels (+1.1%). Clothing & Footwear (-1.2%) and Recreation, Sport & Culture (-0.5%) saw price decreases over the month.

In April 2026, the national average price of a pint of stout in licensed premises was €6.32, up 26c in the year, while a pint of lager was €6.75, up 27c compared with April 2025.