Ireland: Inflation eases in November
December 9, 2010
In November, consumer prices dropped 0.1% over the previous month, following no change in consumer prices in October. According to the Central Statistics Office (CSO), the negative change in consumer prices was led by lower prices of clothing and footwear, as well as alcoholic beverages and tobacco. Annual inflation stepped down from 0.7% in October to 0.6% in November, the first easing since March 2010. The reading contrasted market expectations that had inflation rising to 0.9%. Meanwhile, annual HICP inflation (based on the harmonised index of consumer prices) remained unchanged in November from the October reading of minus 0.8%. According to the latest Quarterly Bulletin, the Central Bank forecasts the harmonised index HICP inflation to reach -1.4% in 2010 before rising to 0.9% in 2011.