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Ireland saw a 0.3 per cent rate of deflation in December, though the annual inflation rate stood at 2.5 per cent. grahammclellan via Flickr
Deflation
Cost of living fell by 0.3 per cent in December
The rate of inflation fell by 0.3 per cent in December, though prices were still up by 2.5 per cent on the previous year.
THE COST OF LIVING in Ireland fell by 0.3 per cent last month, according to figures published this morning.
A report from the Central Statistics Office showed that the Consumer Price Index had fallen by 0.3 per cent in December, bringing the annual rate of inflation down to 2.5 per cent.
The decrease was led by falls in the cost of housing, water and utilities, which fell by 1.4 per cent, while the cost of clothing and footwear dropped by 1.1 per cent – largely attributable to the early onset of the January sales for many retailers.
The cost of miscellaneous goods and services rose by 0.5 per cent, as did the cost of alcohol and tobacco – the latter being affected by the Budget’s measures to increase the excise duties levied on tobacco products.
When measured on the European Union’s standard ‘Harmonised Index of Consumer Prices’ (HICP), the inflation rate fell by 0.1 per cent, putting the annual rate of inflation at 1.4 per cent.
Data published earlier this week by the EU’s statistics agency Eurostat showed that inflation in the euro area, when measured by the same HICP value, stood at 2.7 per cent for the year to December – almost double the Irish rate.
The new data from the CSO means that Ireland’s rate of inflation was the third-lowest in the EU in 2011, behind only Sweden (0.4 per cent) and Malta (1.3 per cent).
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