| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Irish Economy Last Updated: Sep 12, 2014 - 7:15 AM

Irish Economy 2014: Annual consumer price inflation up 0.4% in August
By Finfacts Team
Sep 11, 2014 - 5:12 PM

Email this article
 Printer friendly page

Source: CSO/ Davy

Irish Economy 2014: The CSO reported Thursday that prices on average, as measured by the CPI (consumer price index), were 0.4% higher in August compared with August 2013.

The most notable changes in the year were increases in Education (+4.5%), Alcoholic Beverages & Tobacco (+3.9%), Miscellaneous Goods & Services (+2.9%) and Restaurants & Hotels (+2.8%). There were decreases in Communications (-4.6%), Food & Non-Alcoholic Beverages (-2.6%), Clothing & Footwear (-2.0%) and Furnishings, Household Equipment & Routine Household Maintenance (-1.9%).

Consumer Prices in August, as measured by the CPI, increased by 0.2% in the month. This compares to an increase of 0.1% recorded in August of last year. The most significant monthly price changes were increases in Clothing & Footwear (+6.0%), Furnishings, Household Equipment & Routine Household Maintenance (+1.4%) and Restaurants & Hotels (+0.5). There were decreases in Transport (-0.6%), Recreation & Culture (-0.5%) and Alcoholic Beverages and Tobacco (-0.5%).

Contributions to the overall CPI – annual change:

The sectors which caused the largest upward contribution to the CPI in the year were Restaurants & Hotels (+0.43%), Miscellaneous Goods & Services (+0.34%) and Alcoholic Beverages & Tobacco (+0.23%);

The sectors which caused the largest downward contribution to the CPI in the year were Food & Non-Alcoholic Beverages (-0.29%), Communications (-0.14%) and Furnishings, Household Equipment & Routine Household Maintenance (-0.09%);

The main factors contributing to the annual change were as follows:

  • Restaurants & Hotels increased mainly due to higher prices for alcoholic drinks, hotel accommodation and food consumed in licensed premises, restaurants, cafes, canteens etc;
  • Miscellaneous Goods & Services rose primarily due to higher health and motor insurance premiums and the increased costs associated with the local property tax;
  • Alcoholic Beverages & Tobacco increased due to higher prices for alcohol sold in off licences and supermarkets and higher tobacco prices;
  • Food & Non-Alcoholic Beverages decreased due to lower prices across a range of products such as vegetables, meat, bread and cereals;
  • Communications decreased mainly due to decreases in the cost of telephone and telefax equipment and telephone and telefax services;
  • Furnishings, Household Equipment & Routine Household Maintenance fell mainly due to the reduced cost of furniture and furnishings, household textiles and glassware, tableware and household utensils.

David McNamara, economist at Davy, commented - - "Inflation continued to rise modestly in August, with prices up 0.4% on the year and up from an annual rate of 0.3% in July. Over the month, prices were up 0.2%. The HICP measure of inflation, which is used to compare prices across the EU, rose to an annual rate of 0.6% from 0.5% in July.

At face value, these data suggest that price pressures remain very weak in the economy. However, stripping out ECB rate cuts shows annual inflation rising to 1% over the month from 0.8% in July. In the year to August, mortgage interest costs fell 9.8%, accelerating from a 9.3% decline in July. Goods inflation decreased 1.6%, easing from a 1.9% fall in July, pushing up on overall inflation. However, energy prices declined again in August, down 0.3% year-on-year, following three consecutive months of price rises, impacted by lower oil prices.

In contrast, services prices inflation (excluding mortgage interest) was up 3.1% in August, down marginally from 3.2% in July. In particular, education costs (+4.5%), alcohol & beverages (+3.9%), restaurants and hotels (+2.8%) and insurance costs (+4.3%) all added to the increase in inflation. Offsetting these price rises were declines in clothing and footwear (-2.0%), food and non-alcoholic beverages (-2.6%) and communications (-4.6%).

With current low interest rates and energy prices, the outlook for inflation remains weak. The recovery in the economy may soon exert some modest price pressures on domestic inflation, but we expect inflation to remain well below 1% this year."

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March