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INFLATION SLOWED MARGINALLY to 4.6% in July according to figures released today by the CSO, while the Irish economy grew by 3.3% in the second quarter of 2023.
The latest EU Harmonised Index of Consumer Prices (HICP) for Ireland is estimated to have increased by 4.6% in the 12 months to July 2023, a change from 4.8% in June.
Food prices are estimated to have risen by 8.6% in the last 12 months while energy prices are estimated to have decreased by 1.3% over the same period.
‘Flash’ GDP figures also released by the CSO today show that the Irish economy grew by 3.3% from April to June of this year.
The ‘flash’ estimate is the initial estimate published one month after the end of the quarter with more detailed information due to be published in early September.
Minister for Finance Michael McGrath commented that the 3.3% growth more than reverses the 2.8 per cent fall recorded in the first three months of the year.
The quarterly increase was largely due to increased output in the multinational sector.
Minister McGrath said: “As I have stressed in the past, Modified Domestic Demand is a much better indicator of what is going on in the domestic economy and these data will be published just over a month from now. My department will then begin the process of producing its autumn forecasts that will underpin Budget 2024.”
Modified domestic demand, a proxy for the domestic economy, is the sum of consumer spending, government spending and investment, excluding investment in imported IP and aircraft for leasing. It also excludes changes in the value of stocks.
“That said, high frequency data suggest that the domestic economy performed reasonably well in the second quarter – consumer confidence strengthened, unemployment reached a record-low of 3.8 per cent in June and construction activity picked up,” McGrath added.
On the inflation data, McGrath said as the fall in wholesale energy prices is passed-on at the retail level, he expects headline inflation to ease further in the coming months.
However, he said he is also conscious that core inflation – price growth excluding energy and food – is still running at 5%.
“This largely reflects the strength of the economy right now and the achievement of full employment. This is projected to ease, albeit at a somewhat slower pace than for headline inflation,” McGrath said.
The July inflation figure of 4.6 per cent is down from a peak of 9.6 per cent in July of last year.
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Just got the highest electricity bill since the start of the inflation, though usage lower than year before.
@GoodBrother: Haven’t used any Gas since February yet the standing charge may aswell say i was …disgraceful
@Trent: Roughly a euro per day. No usage and still the bill is €60+. Before C-19 my gas bill used to be about €45 – 50 all in.
@GoodBrother: Really. Inflation has been creeping up for well over a year now, nearly 2. Unless you used zero electricity until this bill, or were locked into a really low tariff for almost 2 years, then I do not believe this is your highest bill since inflation started to rise.
@GoodBrother: I got probably one of my lowest one,since the smart meter went in my bills are going down,I can see what is driving my bill.
We are now the most expensive country in Europe to live in. I never imagined we’d be more pricey than Switzerland or Norway. Thank you, FFG. Also on track to become the most obese.14 million each day for our national debt of $250 billion. Third-world heat care systems. the capital’s inner city is rife with violence and drugs. As a country, we are regressing.
Worked hard all my life as a chef to save enough for my own buisness watching it all dwindled away look after there own big hotels cashing in a fortune on migrants while the small tourists buisness get a slap on the face .
There is no end to being RIP of Ireland
@Paul Maguire: unless you are a dole merchant, then you get everything paid for ,
@James Moylan: Said the Kerry man to the bull.
Stop voting FF/FG ye thick muppets, let SF in, we need a change..but in all fairness this open door my documents, come in my friends has to stop. I was walking around Ennis, Co Clare the other, For a bit I thought I was in the suburbs of Mogadishu, only the rip off cost of a pint and newspaper brought me back to drizzleville.
@will o bdee: The shiners will be the same, they will be forced to stay in line, easy to promise the Earth in opposition, but it will either be business as usual or populist policies will lead to medium to long term problems. either way, I cannot see it SF doing any better than the current shower of tool bags.
Mortgage through the roof. Extra 600 a month meant pulling kids outa 3rd level education…
@Monty Carlow: Go on the dole and get mortgage paid by state, medical card, plus many more perks including grants for third level etc. etc.
@paulinlavally@gmail.com: It was the Bankers and Developers that collapsed the Irish economy.
Greed rife at the moment. Could list crisis after crisis but I can’t be bothered
But yeah it was the guy on the dole.
Look up lad.
@Monty Carlow: get them to learn Ukrainian or Arabic ,free everything from then on
@Monty Carlow: do a deal with the bank and keep your kids in 3rd level. Education is the key to a decent job
@Monty Carlow: Must be a big mortgage,mine is going up €38 a month in September,hope you’re kids are working to help with college.
@Monty Carlow: go to the docks near customs during the night,row out some,rip up you’re passport row in early morning,say you’ve amnesia or lost you’re passport rowing,they’re lost on flights available when they’re boarding, lost when landing it’s amazing in a completely sealed aircraft how it can happen shouldn’t be hard to understand in a boat I’d imagine…
In who’s opinion? absolute rubbish,it’s through the roof and slowly but surely rising in different segments be it food, electricity and fuel which will again increase in october,perfect timing when kids go back to school and cold weather kicks in and people need heating oil which they’ve been putting off keeping they’re heads above water at present and we might get help with more money from government, what money? it’s all going up again they’ve said it already the payment won’t outway the cost to the average person we lose again.
Tighten your belts. Store tins of beans. This is the peak.
That’s complete media tripe. Are you trying to feed people carrots on sticks
Buy less
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