Ireland: Inflation accelerates in December
January 20, 2011
In December, consumer prices increased 0.2% over the previous month, contrasting a 0.1% decline in November. According to the Central Statistics Office (CSO), the increase in consumer prices was led by higher prices for transport (+1.8% month-on-month) and miscellaneous goods and services (+1.2% mom), which were partially offset by falling prices for clothing and footwear (-2.2% mom) and alcoholic beverages and tobacco (-1.3% mom). Annual inflation jumped from 0.6% in November to 1.3% in December, marking the highest rate in two years. Meanwhile, annual HICP inflation (based on the harmonised index of consumer prices) stepped up from minus 0.8% in November to minus 0.2% in December. According to the latest Quarterly Bulletin, the Central Bank forecasts the HICP inflation to reach 1.1% in 2011.