Ireland: Inflation remains in positive territory for a second consecutive month
October 15, 2010
In September, consumer prices dropped 0.1% over the previous month, which contrasted the 0.7% increase recorded in August. The main drivers behind the monthly price decrease were lower prices for transport, which, according to the Central Statistical Office (CSO), were due to a reduction in airfares. Despite the monthly price fall, annual inflation stepped up from 0.2% in August to 0.5% in September, marking the second consecutive month with inflation in positive territory since December 2008. Meanwhile, annual harmonised inflation (based on the harmonised index of consumer prices - HICP) stepped up from minus 1.2% in August to 1.0%. In the October Quarterly Bulletin, the Central Bank stated that it expects inflation to average minus 1.4% this year and to rebound to 1.1% next year.
Author: Armando Ciccarelli, Head of Data Solutions