Era of falling prices coming to an end

THE era of falling prices is coming to an end with the warning that mortgage costs are set to rise and Tesco is pulling the plug on its euro-sterling price parity initiative.

Figures released by the Central Statistics Office (CSO) yesterday showed prices rose 0.4% in August – the first hike since September last year – driven by higher clothing, mortgage and petrol costs.

Experts are also warning homeowners are facing the prospect of increased mortgage costs despite the European Central Bank (ECB) indicating it would not increase interest rates until at least next year.