Energy prices drive inflation to 3.4%

CSO published flash estimates of inflation from the EU Harmonised Index of Consumer Prices for Ireland for August on Monday

Energy prices in Ireland have risen by almost 12% in the past year, data from the Central Statistics Office (CSO) shows.

Energy prices in Ireland have risen by almost 12% in the past year, data from the Central Statistics Office (CSO) shows.

The CSO published the flash estimates of inflation from the EU Harmonised Index of Consumer Prices (HICP) for Ireland for August on Monday. It estimates that energy prices increased by 4.3% in the month and have risen by 11.8% over the 12 months to August 2026. 

The crisis in the Middle East has continued to put pressure on wholesale energy costs. Earlier this month, figures from the Commission for the Regulation of Utilities (CRU) showed that 328,273 households in Ireland were in electricity arrears in May, while 188,941 are in gas arrears. Most electricity suppliers have since increased their prices.

Meanwhile last Friday, an emergency sitting of the Dáil approved a Government decision to extend cuts to petrol and diesel taxes until November. The excise cuts amount to a 27c cut per litre of petrol and a 32c cut per litre of diesel.

The report of the Government's Cost of Business Advisory Forum published last week also identified energy pricing has been identified as the biggest non-pay-related driver of business costs in Ireland.

Overall, prices for consumer goods and services in Ireland are estimated to have risen by 3.4% in the 12 months to August and increased by 0.6% since July 2026. Food prices are estimated to have gone down by 0.2% in the last month and gone up by 0.1% in the last 12 months. Service prices remain unchanged in the month and have risen by 3.7% in the 12 months to August 2026.

The HICP is an index of consumer prices compiled by the CSO to allow comparisons across Eurozone countries. Eurostat will publish the figures for the whole of the Eurozone, including Ireland, on Tuesday.