Inflation

Inflation


Inflation is the steady and persistent rate of change in the level of prices in an economy. The most common measure of inflation is the Consumer Price Index (CPI) which is the overall change in the prices of goods and services that people typically buy over time. In Ireland, the Central Statistics Office (CSO) collects approximately 53,000 prices every month and compares these to the corresponding prices from the previous month in order to construct the CPI.

Short-term Trends


Inflation_Mar_2019

Inflation Rate  (% annual change)

Source:  CSO – Consumer Price Index

Long-term Trends


The annual average rate of inflation in 2018 was 0.5%.  This compares to 0.4% increase in 2017 and a no change for 2016. The largest year-on-year price increase was recorded in September and October 2018 when prices rose by 0.9%, respectively.  The largest price rises were recorded for Housing, Water, Electricity, Gas & Other Fuels (+5.5%) which was mainly due to higher rents and increases in the price of electricity, home heating oil and gas.

Inflation_2018.JPG

Inflation Rate  (% annual change)

Source:  CSO – Consumer Price Index