Prices rose 9.1 percent in the year to the end of July, but the pace of price increases has slowed


Irish prices rose 9.1 percent in the year to July, a 38-year high on a 12-month basis.

Here, however, there are some signs that the pace of the rise has slowed. Prices rose 0.4 percent in July, according to the Central Statistics Office, on the back of rising transportation and food costs.

Monthly inflation has fallen from 1.9 percent in March, although the 12-month cumulative is still extremely high. Inflation in July 2022 was the same as in July 2021.

Housing, water and energy drove the annual rise in inflation, rising 21.6 percent in the 12 months to July.

Energy alone is up 1.6 percent for the month and up 50.4 percent since July 2021.

The last time annual headline inflation was higher was in the three months to June 1984, when prices rose 9.7 percent.

Miscellaneous goods & services (-1 pcs) and education (-0.7 pcs) were the only items that recorded year-on-year declines in July.

Clothing and footwear costs fell 5 percent month-on-month, the only category to see a price drop.

Next to energy, food is the fastest rising category of inflation.

The price of an 800g white slicing pan has increased by 18 cents in the year to June 2022.

A 500g pack of spaghetti costs 21 cents.

A two-liter bag of whole milk has risen by 27 cents a year.

The average price of Irish cheddar (per kilo) rose by €1.07, while butter prices rose by 48 cents per pound.

However, the average price for 2.5 kg of potatoes fell by 20 cents in the 12 months to June.

The national price of a pint of stout was €5.13 in June, up 17 cents over the year, and a pint of beer was up 22 cents to €5.53.

New US data this week shows that the headline annual inflation rate fell 0.6 percent to 8.5 percent in July, beating expectations.

But US central bankers urged caution, saying it was too early to tell if inflation had peaked.

Economists predict Irish inflation could reach double digits by autumn.

In the UK, inflation hit a new 40-year high of 9.4 percent in June, with central bankers forecasting energy prices could rise to as much as 13 percent in the next few months.

Recent CSO data shows that the surge in inflation in Ireland is hitting the elderly, single people and local authority tenants the hardest.

According to the study, rural households are also harder hit by price increases than households in cities.

Last month the EU’s statistics agency – which measures a slightly different basket than the CSO – estimated Irish prices had risen 9.6 per cent in the year to July, holding steady from June’s increase.

Eurozone inflation rose slightly year-on-year to 8.9 percent in July, up from 8.6 percent in June.

Ten euro-zone countries posted double-digit inflation in July, including two of the bloc’s largest economies, Spain (10.8 percent) and the Netherlands (11.6 percent).

German prices rose 8.5 percent, slightly higher than in June, while France posted inflation of 6.8 percent.

Lithuania, Latvia and Estonia recorded inflation above 20 percent in July.

Eurozone energy prices rose 39.7 percent and have eased slightly since June.

The ECB hiked interest rates last month to tame inflation, risking a hit to economic growth.

But the bloc’s economy has held steady so far, with euro-zone GDP growing 0.7 percent in the three months to June, while the EU grew 0.6 percent quarter-on-quarter, Eurostat said on Friday.

First quarter growth was 0.5 percent in the euro zone and 0.6 percent in the EU, mainly due to an unexpected increase in Irish GDP.

However, economists are forecasting a “technical” recession in the second half of the year if ECB policy takes effect. Prices rose 9.1 percent in the year to the end of July, but the pace of price increases has slowed

Fry Electronics Team

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