CSO reports 1.7% fall in wholesale prices

Wholesale factory-gate prices decreased by 1.7% last month, bringing the annual decrease to 10.6%, according to figures released today by the Central Statistics Office.

The decrease compares to a 10% fall in wholesale prices in the year to the end of May and a 7.5% fall in the 12 months to the end of April.

The decrease in factory-gate prices comes at a time when consumer prices are rising at around twice the EU average.

Inflation in consumer prices was running at 3.5% last month.

Dermot Jewell, chief executive of the Consumers' Association, said the figures highlight the fact that retailers are failing to pass on their savings to consumers.

"The important element here is that the prices aren't dropping for consumers, not in any shape or form. The reverse has happened," he said.

"This is a startling figure and shows the determined element of certain retailers to maintain prices and profit margins at unacceptably high levels."