Inflation rate slows for third month in a row

The annual rate of inflation in Ireland has continued to slow, latest figures show.

The Consumer Price Index (CPI) rose by 7.8% between January 2022 and January 2023, down on the 8.2% rate recorded in December, according to data published by the Central Statistics Office (CSO).

It is the third straight month where the annual CPI rate has fallen.

But it is the sixteenth month in a row where the headline inflation rate has been at least 5%, and the 7.8% rate is still almost four times higher than the European Central Bank’s target rate of 2%.

Housing, water, electricity, gas and other fuels is the category that has experienced the highest year-on-year increase at 26.4%. Non-alcoholic beverages have risen by 12.8% in the last 12 months.

Detailed analysis of energy costs shows that gas prices are up 86% on January 2022, with electricity up by 63% and home heating oil by 35%.

In terms of food prices, whole milk is up 31% in the last 12 months, with butter up 23% and bread up 17%.

The month-on-month comparison shows that consumer prices fell by 0.8% in January compared to December.

Anthony Dawson, statistician in the CSO’s Prices Division, said: “The latest publication for the Consumer Price Index (CPI) shows that prices for consumer goods and services in January 2023 increased by 7.8% on average when compared with January 2022.

“This was down from 8.2% in the 12 months to December 2022. Prices have been rising on an annual basis since April 2021, with annual inflation of 5% or more recorded in each month since October 2021.

“However, this is the third straight month where the annual rate of inflation has fallen.”