Inflation Down but trend worrying
The annual rate of inflation has fallen marginally in June from 4.7% to 4.4%. Prices are still going up but not as fast as this time last year, mainly due to a decline in oil prices. The annual rate of inflation has now declined for two months in a row.
The main reason for a decline in the annual rate is that this time last year, oil prices and food prices were increasing significantly.
Last month, oil prices fell back while food prices are now increasing at an annual rate of almost 3% - compared to over 7% this time last year. This means that on an annual basis, the rate of inflation has dropped.
While telecommunication costs also fell in June, the cost of healthcare, eating out in restaurants and pub prices are all continuing to rise at rates well above the general rate of inflation. This indicates that inflation will probably remain close to its present rate of 4.4% for the rest of the year.
Latest figures indicate that house prices rose 5.6% in the first six months of this year. This compares to a drop of almost 0.5% in the last six months of 2001. The figures were compiled by Permanent TSB in association with the Economic and Social Research Institute.
National house prices rose by 5.2% in the twelve months to June. The survey shows that in Dublin, house prices rose by 6.8% in the first six months of this year compared to a rise of 5.2% for houses outside Dublin.
