Ireland: Inflation continues to accelerate in January
February 10, 2011
In January, consumer prices decreased 0.2% over the previous month, contrasting a 0.2% increase observed in December. According to the Central Statistics Office (CSO), the fall in consumer prices was led by lower prices for clothing and footwear (-9.3% month-on-month) and household equipment (-2.6% mom), which were partially offset by rising prices for health (+3.3% mom) and alcoholic beverages and tobacco (+1.5% mom). Despite the price drop, annual inflation jumped from 1.3% in December to 1.7% in January, marking the highest rate in more than two years. Meanwhile, annual HICP inflation (based on the harmonised index of consumer prices) swung from minus 0.2% in December to plus 0.2% in January. According to the latest Quarterly Bulletin from January 2011, the Central Bank forecasts HICP inflation to reach 0.3% in 2011 and 0.5% in 2012.