Inflation in Ireland drops slightly to 8.2% in December

January 17, 2023 at 11:46 am

(Alliance News) - The December annual rate of inflation in Ireland was at 8.2%, down slightly compared with previous months.

The consumer price index rose by 8.2% in December from a year earlier, down from an increase of 8.9% in the 12 months to November 2022, and the 9.2% increase in the 12 months to October 2022.

December is the fifteenth consecutive month where the annual increase in the CPI has been at least 5%.

The divisions with the largest increases in the year to December were in the housing, water, electricity, gas and other fuels category, up 26%, and the food and non-alcoholic beverages, up 12%.

The annual change in food and non-alcoholic drink costs reflects a rise in prices across a range of products. This includes fresh whole milk, up by a third; sugar up by 30%; the cost of eggs is up 24%; butter is up by 23%; and bread up 16% compared with a year ago.

Consumer prices fell by 0.2% in the month between November and December, marking a slowdown in the rate at which the price of goods and services are increasing.

The divisions with the largest decreases were transport, down 2.6% and alcoholic beverages and tobacco, down 0.7%.

Speaking at the start of the year, Irish Finance Minister Michael McGrath said that he believed Ireland's rate of inflation had peaked and the rate at which it falls will accelerate as the year went on.

"We do believe that this downward trajectory with inflation will continue and will actually accelerate, particularly in quarter two and quarter three of this year, so that is good news," he said.

The Irish government is yet to decide whether to extend several cost-of-living supports beyond February.

As well as a budget for 2023 of EUR6.9 billion, a cost-of-living package worth EUR4.1 billion of one-off measures was announced to help people pay rising bills and costs.

This includes three EUR200 energy credits for households, one-off double social welfare payments, and the Temporary Business Energy Support Scheme, which offers to help businesses whose energy costs have increased by 50% or more.

Taoiseach Leo Varadkar, the Irish prime minister, said previously the Irish government was surprised more businesses had not applied for TBESS.

"It's only in the thousands, we thought it was going to be tens of thousands," he said.

"I would encourage them to make a claim – it will be backdated to September so that will help with energy costs, and obviously we'll have to see before the end of February whether we need to extend that, and we'll make a decision closer to the time."

source: PA