IRISH CONSUMER PRICES were on average 6.7% higher in March than they were a year previous with sharply increasing fuel and energy prices mostly to blame, according to the Central Statistics Office.

It represents the largest annual change in prices since November 2000.

The Consumer Price Index (CPI) reveals notable monthly increases in the price of home heating, petrol and diesel last month as well as flour in the wake of the Russian invasion of Ukraine in late February.

Annual inflation accelerated from 5.9% in February to 6.7% last month, well above the European Central Bank’s (ECB’s) target of 2% across the Eurozone.

Overall transport prices — a category that includes petrol, diesel prices as well as airfares — climbed 18.7% in the year, according to the CSO.

Diesel prices increased 46% in the 12 months to March and over 17% in the month from February as global crude oil prices spiked following the invasion.

Petrol prices alone increased by 35.2% in the year and over 10% in March alone. 

Housing, water, gas and electricity prices climbed 17.4% in the year.

Electricity prices have soared 22.4% in just 12 months while natural gas prices rose 29% and home heating oil has jumped by 126.6%.

Food prices have also started to creep up with global markets pricing in the potential loss of Ukrainian and Russian grain later this year. Natural gas, of which Russia is a major global exporter, is also a key component in the manufacture of fertiliser, which is accelerating input costs for Irish farmers.

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Altogether, food prices were up 3.1% in the year. The price of flour and other cereals, up 10% over 12 months, climbed 5.1% in the month of March from February.

The Government is currently preparing a second package of measures to help with the cost of living. 

It’s expected to receive Cabinet approval next week but Government sources have said there is a need to “manage expectations” ahead of the announcement, given measures will not go far enough to cover all the rising costs households are experiencing.

The Central Bank of Ireland said yesterday it expects inflation to peak at 8% in the coming months and average out around 6.5% for the full year — well above previous expectations.