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CONSUMER PRICES IN Ireland are estimated to have risen by 4.9% in the 12 months to August.
In its latest flash estimate for the Harmonized Index of Consumer Prices (HICP), the Central Statistics Offices reports that prices have increased by 0.5% since in the month since July.
The HICP is a “harmonised” measure of inflation that is comparable across all countries in the European Union because all the countries follow the same methodology.
The corresponding rates for the Eurozone will be published tomorrow.
The annual rate of inflation in August compares to a figure of 4.6% in the 12 months to July, and to an annual increase of 5.3% in consumer prices for the Eurozone over the same period to July.
The CSO noted that by “looking at the components of the flash” estimate for August, it can estimate that energy prices have increased by 3.4% since July, and by 5.1% over the 12 months to August.
And while food prices have remained the same since July, they rose by 7.7% in the 12 months to August.
Excluding energy and unprocessed food, the HICP is estimated to have increased by 4.8% in the year to August.
The CSO noted that these are flash estimates which are subject to revision when the final HICP results are published next month.
Elsewhere, transport costs have been shown to have risen by 0.7% in the month to August, but have decreased by 1.5% in the year to August.
Dan O’Brien, chief economist of the Institute of International and European Affairs, described the 0.5% increase in consumer prices in the month from July to August as a “hefty” one.
He added that if a similar increase is seen across the entire Eurozone in the figures which will be published tomorrow, then it “would make another interest rate hike in September considerably more likely”.
Consumer prices in Ireland rose by a hefty half a percent between July and August, according to today's @CSOIreland numbers.
— Dan O'Brien (@danobrien20) August 30, 2023
Data for the entire eurozone out tomorrow morning. A similar 0.5% increase would make another interest rate hike in September considerably more likely.
In July, the European Central Bank increased interest rates by 0.25%.
This was the ninth consecutive increase in the space of a year and brough the ECB’s benchmark deposit rate to 3.75%, the highest it has been since May 2001.
In a statement when announcing the increase on 27 July, the ECB said the latest increase would ensure “that inflation returns to its 2% medium-term target in a timely manner”.
The ECB is due to have its next meeting on 14 September and its president Christine Lagarde said interest rates could go up again at this meeting.
Speaking on 30 July, she said: “I hear some people say that the final rate hike will take place in September.
“There could be a further hike of the policy rate or perhaps a pause. A pause, whenever it occurs, in September or later, would not necessarily be definitive.
“Inflation must return durably to its target.”
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5%. Who makes this suff up! More like 25% at least.
@Cars: Facts mostly.
@Cars: it’s a rolling year stat….. It’s up 18.4% from January 2021. Maybe that’s what you refer to. Google “CSO CPI inflation calculator”….. An eye opening tool
@Daniel Roche: skewed statistics more like. If only it was 5%, that’s fairytale stuff to feed to the general population. The current government (and previous) failed miserably to deliver. Their only option to stand any chance of remaining in power will be to try indoctrinate the citizens with complete BS to paint a fictional picture of delivering.
Ii’ a lot more than that, grocery prices have soared.
5% ? put 2 if front or the 5 and it’s correct
Diesel gone up over 10c in Circle K in two weeks in Tallaght
@Eddienowy Byrne: same here in Wicklow
@Eddienowy Byrne: just in time now that the government are putting on 5c on Friday on diesel and 7c on petrol .. they hate giving people a break
@Gavin Kelly: That would imply that a break has ever been given.
@Gavin Kelly: Especially handy when they can claim their fuel and expenses.
@Gavin Kelly: That’s a lie and you know it,I’m not agreeing with it but at least tell the truth,that is a major problem and why people will vote FF or FG,they can’t trust the other side,better the devil you know, maybe tell the truth.
@George Vladisavljevic: You know the old saying ” All pigs are equal but some pigs are more equal”, Animal Farm.
5% and the rest. They having a laugh
Fuel rocketing back up as well since they put taxes back on ….this will lead to the increase of prices on everything
Full shopping bags are down 50%! And the Price has increased by 25%!
That’s just fact.
Who ever compiled this,please let us all know where you shop.
@Thomas: I shop in German supermarket and the numbers look about right to me, for the period over the last 12 months.
Definitely not 25% or even +40% as claimed here.
But maybe it’s my shopping habit – very little processed food on much meat either.
@Wolfgang Bonow: me also,the numbers may not be as high as 25 percent in some cases,but nothing is near as low as 5 percent.
@Wolfgang Bonow: even the German supermarkets have increased prices big time way more than the 5% spoke abouts.
They can no way still call themselves discount supermarkets
@Wolfgang Bonow: I do too.
But I noticed bread had increased in price by 17% between my last 2 visits.
These so called “journslist” from the journal printing lies and spreading falsehoods for the irish government..
Shame on you all at the journal,
Absolute rubbish. Inflation is really running at about 43% easily. I haven’t changed my spending at all and unfortunately for banks their apps are the real key to finding out just how bad inflation really is. My app had my spend at 43% higher than this time last year and I’ve actually cut back on certain things.
5%??? try 15 or 20% with some of the price increases ive seen lately……greed greed and more greed
They will most definitely need revision,
Brown Thomas getting a Lidl ‘middle isle’ this week apparently
It can’t be that number…. Most of the prices have increased by 30 to 50 percent… That are lying.
5%? Do they take us for fools or what…And as a lot of comments state the fuel increases will add to inflation even more, not to mention the carbon tax coming in the budget.
have your say