Inflation slows as food prices moderate

Inflation continues to rise with prices for consumer goods and services in June 2026 up 3.4% compared with June 2025, the Central Statistics Office published on Thursday shows. Consumer prices rose by 0.3% in the month between May 2026 and June 2026.

Inflation continues to rise with prices for consumer goods and services in June 2026 up 3.4% compared with June 2025, the Central Statistics Office published on Thursday shows. Consumer prices rose by 0.3% in the month between May 2026 and June 2026.

The rate of inflation has slowed, as the Consumer Price Index (CPI) rose by 3.4% in June compared to annual increase of 3.6% in the 12 months to May 2026.

"The most significant increases in the 12 months to June 2026 were seen in Education Services (+8.9%) and Housing, Water, Electricity, Gas & Other Fuels (+7.3%)," said CSO statistician Anthony Dawson. "The annual change in Education Services reflects a rise in costs associated with third-level education which came into effect from October 2025. The rise in Housing, Water, Electricity, Gas & Other Fuels was due to higher prices for rents, mortgage interest repayments, and home heating oil."

Deloitte Ireland chief economist Kate English said that while the inflation outlook has improved in recent weeks, it remains elevated. “Food inflation is continuing to decline and is at its lowest level since September 2021. However, with the rising cost of fertiliser, it is uncertain if this will hold," said Ms English.

“Lower fuel prices reversed the sharp upward trend seen in the Consumer Price Index in March, yet European gas prices continue to be a concern. These have moved upwards over the past week as a heatwave in Europe increases the demand for air conditioning. Gas reserves remain lower than their average over the past five years, and this will be a pressure point as we move into colder months."

Excluding Energy and Unprocessed Food, the CPI grew by 2.9% in the 12 months to June 2026. The only division to record a decline when compared with June 2025 was Furnishings, Household Equipment & Routine Household Maintenance (-0.1%).

Consumer prices rose by 0.3% in the month between May and June 2026. The divisions that recorded the largest rises in the month were Recreation, Sport & Culture (+4.3%) and Housing, Water, Electricity, Gas & Other Fuels (+0.6%). The divisions that recorded the largest decreases in the month were Clothing & Footwear (-0.9%) and Transport (-0.8%).

“A change in the inflation outlook has already forced central banks to react," said Ms English. "Last month, the European Central Bank (ECB) increased interest rates for the first time since September 2023. With the ECB due to meet again in two weeks’ time, all eyes will be on Eurozone inflation data next week. At this point in time, it is not expected we will see another rate increase announced.”