Average prices fall for ninth consecutive month

Average consumer prices in Ireland have fallen for the ninth month in a row, according to the latest inflation figures from the CSO.

The statistics agency says prices fell by 0.8% last month and by 5.9% in the 12 months to July.

This compares to a 5.4% decline in the year to June.

The CSO says the most notable changes over the past year have been a 27% reduction in the category that includes mortgage repayments, as well as electricity and gas bills.

Clothing and footwear prices have fallen 11%, while food and drink prices are down 4.2% and transport costs are down 6.2%.

The cost of alcohol and tobacco has increased by 7.7% in the past year, while education costs are up by 4.4% and health costs by 3.4%.

Reacting to the latest inflation figures ISME, the Irish Small & Medium Enterprises Association, demanded that the Government immediately reduce the cost of public services or the competitiveness of Irish business will be decimated.

“With negative inflation, we are now being offered a significant opportunity to get our costs in line with our competitors," ISME Chief Executive Mark Fielding said.

"It is vital that the Government ‘buys in’ to this, for the benefit of the whole economy through a reduction in the cost of public services, including local charges," he added.

"The first step in this has to be a reduction in numbers and pay of the public sector," concluded Fielding.

Employers' group IBEC meanwhile said that the 'window' of deflation must be used to boost competitiveness.

"In order for Ireland to make meaningful progress in addressing its competitiveness difficulties it is vital that the lower cost of living is reflected in all other costs and wages across the economy," IBEC Senior Economist Fergal O’Brien said.