Inflation falls to 10-month low

The annual rate of inflation fell to a 10-month low in September, according to the Central Statistics Office (CSO).

The annual rate of inflation fell to a 10-month low in September, according to the Central Statistics Office (CSO).

The Consumer Price Index for September shows the annual rate of inflation fell to 4.6 per cent, down from 4.8 per cent in August.

However, consumer prices - which saw an increase of 0.3 per cent in August - rose again, with another 0.3 per cent increase in September.

The highest increases were for for housing; water; and electricity, gas and other fuel prices, which rose by 18.8 per cent. The price of alcohol and tobacco rose 5.7 per cent, and prices in the education sector rose 4.6 per cent.

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The most significant monthly price changes were increases of 4.7 per cent in clothing & footwear, attributed to the end of the summer sales.

The higher cost of medical insurance and higher house insurance premiums accounted for a 2 per cent increase in the miscellaneous goods & services category.

Transport saw a 9 per cent fall, which was attributed to a decrease in petrol prices and airline tickets.

The standard euro zone measure of Irish inflation - the EU harmonised Index of Consumer Prices (HICP) - saw an increase of 0.3 per cent in the month, compared with a decrease of 0.3 per cent in September 2006.

The annual rate of inflation, as measured by the HICP, increased from 2.3 per cent  in August to 2.9 per cent in September.