Annual inflation hits seven-year high of 1.7% in April – CSO

Annual inflation hits seven-year high of 1.7% in April – CSO

Inflation hit a seven-year high of 1.7% in the year to April, new figures from the Central Statistices Office figures show.

Today’s CSO figures are a sign of significant consumer price growth in the country after four years as European Union’s best performing economy.

Consumer prices, which have been broadly flat since 2012, grew 1.7% year-on-year in April, up from 1.1% in March on the back of more expensive rents and mortgage interest repayments as well as higher prices for diesel and petrol.

Consumer prices on a monthly level rose by 0.4%, today’s CSO figures show.

The CSO said that Housing, Water, Electricity, Gas and Other Fuels costs rose by 4.7% due to higher rents and mortgage interest repayments as welll as an increase in the price of electricity, gas and home heating oil.

Prices in restaurants and hotels increased by 3.7% in the year to April, while alcohol and tobacco prices increased by 2.4%.

Transport costs also rose by 3.7% last month, mainly due to an increase in air fares and higher prices for diesel, petrol and motor cars.

However, April also saw lower motor insurance premiums and a reduction in prices for appliances, articles and products for personal care and other personal effects, as well as cheaper furniture and furnishings, the CSO added.

While the increase was probably exaggerated by Easter, Ireland appears to be moving into a slightly higher inflation environment, commentedd Austin Hughes, Chief Economist at KBC Bank Ireland.

“By and large it is healthy because the two elements that are driving it are the strength of domestic demand and the fact we are not seeing a collapse in sterling,” he said.

“There is a little less pessimism about the UK economy and that also is a positive for the Irish economy,” the economist added.

The average annual inflation rate for 2018 was 0.5%, up from 0.4% in 2017 and no change in 2016, according to CSO data.

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