Inflation falls 0.5% but rise predicted

INFLATION fell by nearly half a percent in July bringing the annual rate down from 4.4% at end-June to 4.2% at the end of last month, two and a half times the European average.

However, economist Austin Hughes of IIB Bank predicts inflation will exceed 5% for the year.

“We reckon that the range of domestic price increases in the pipeline will push inflation back close to 5% by year-end,” he said.