Ireland Inflation Rate Slows To 5-Month Low In May


Irish consumer prices increased by 0.2 percent in the year to May 2017 after rising by 0.9 percent in the previous month. It was the lowest inflation rate since December last year, as cost rose at a slower pace for transport, and restaurants and hotels.

Year-on-year, prices rose at a slower pace for: Transport (2.2 percent from 7.2 percent in April); restaurants and hotels (1.8 percent from 2 percent); housing, water, electricity, gas and other fuels (0.5 percent from 1 percent); and miscellaneous goods and services (0.2 percent from 1.7 percent). By contrast, cost continued to drop for: Food and non-alcoholic beverages (-2.2 percent from -2.7 percent in April); recreation and culture (-1.7 percent from -2 percent); clothing and footwear (-5.4 percent from -4.3 percent); and furnishings and household equipment (-3.9 percent from -4.9 percent).

Annual core inflation rate, which excludes energy and unprocessed food, fell to a flat reading from 0.7 percent in April.
  
On a monthly basis, consumer prices declined by 0.2 percent, following a 0.4 percent rise in the previous month. The most significant monthly price changes were decreases in transport (-3.5 percent) and miscellaneous goods and services (-0.3 percent). There were increases in communications (1.5 percent) and alcoholic beverages and tobacco (1.4 percent).

The harmonized index showed no growth compared to a year earlier and fell by 0.2 percent in the month.

Joana Ferreira | joana.ferreira@tradingeconomics.com
6/8/2017 10:33:22 AM