Inflation rate highest since 2008

Updated: 07:28, Friday, 11 March 2011

Official figures show that consumer prices rose sharply last month, mainly due to higher clothes and footwear prices and increases in health insurance premiums.

1 of 1Consumer prices - Inflation rate up to 2.2%
Consumer prices - Inflation rate up to 2.2%

The Central Statistics Office said the annual rate of inflation in February was 2.2%, up from 1.7% in January and the highest since November 2008.

Prices rose 0.9% compared with January, the biggest monthly rise for three years. The CSO said there was a pick-up in clothes and footwear prices after the end of winter sales, while health insurance premiums also increased.

The EU's harmonised measure of prices - which excludes mortgage interest repayments - rose 0.9% in the month, giving an annual increase also of 0.9%.

A breakdown showed the clothing and footwear prices jumped 6.5% compared with January, while prices of furniture and household equipment rose 1.8%. Health insurance prices jumped by 14.4%. But prices in the separate health category were 0.6% lower, due to a 4% drop in prices for prescription drugs.

Food prices were up 0.7% in the month. Rents rose by 1%, but mortgage payments fell 0.1%. Transport costs climbed by 0.7%, with petrol prices up 1.1% and air fares jumping 21%.

Restaurant prices dropped 0.5% during February, but accommodation costs were up 1.5%.

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