Irish Inflation – June 2007

Inflation grew at an annual rate of 4.9% in June, down from 5% in May, according to new figures from the Central Statistics Office.

However, when the cost of mortgage repayments are excluded, the harmonised index of consumer prices, the common measure of inflation across Europe, shows prices are running ahead by 2.8%. This is 1% higher than the eurozone average.

June’s inflation figures show that the cost of mortgage interest has risen by 46% since June 2006, while there was also a notable increase in the gas and electricity prices.

The CSO report shows electricity prices are up 12.6% on last year and gas prices have increased by 20.5%.
Doctors’ fees have increased 4.9% since June 2006; dentist services are 3.3% higher and hospital fees are 4.4% ahead.
Health insurance costs have increased by 9.6%.

Transport costs, excluding fuel, are also substantially higher than a year ago. Air fares, perhaps reflecting extra charges for baggage and online check-in, are 2.7% more expensive, rail fares are up 6.7% and bus fares are 2.9% higher. Taxi fares are 12.4% higher.

Hotel accommodation price have risen by 3.6% in the past 12 months, eating in restaurants is 4.4% more expensive and drinking beer and wine in a licensed premises has risen by 4.1% and 4% respectively.

Food prices have risen by 2.5% since last year, though there were some categories of declining prices, including lamb, bacon, cheese and butter.