Inflation up in June on higher airfares and rents

Updated: Thursday, 11 Jul 2013 16:04

New figures from the Central Statistics Office show that prices rose by 0.1% in June compared to May on the back of more expensive airfares, hotel accommodation and higher rents.

The CSO said that on a yearly basis, prices rose by 0.7% in June compared to the same time last year.

Breaking down the figures, they show that transport costs rose by 0.6% in June.

Prices in hotels and restaurants increased by 0.5%, while housing, water, electricity, gas and other fuel prices increased by 0.4%.

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But the prices of clothing and footwear fell by 2.7% due to the summer sales, while furnishings, household equipment, and routine household maintenance prices were down 0.5% - also due to sales.

Today's figures also show that the annual rate of inflation for services was 1.6% in the year to June, while goods decreased by 0.6%. Services, excluding mortgage interest repayments, rose by 2.6% in the year since June 2012.

The EU harmonised index of consumer prices rose by 0.1% in the month, while prices fell by 0.2% in June of last year.

The most notable changes in the year were a 4.8% increase in education, a 4.7% rise in housing, water, electricity, gas and other fuels, and a gain of 4.5% in alcoholic beverages. The cost of furnishings, household equipment and routine household maintenance fell by 32.%, transport costs slowed by 2.7% and communications prices dropped by 2.4%.

Commenting on today's figures, Goodbody economist Juliet Tennent said that the Irish inflation rate remains significantly below that of the euro zone where the flash estimate for June rose to 1.6% year on year from 1.4%. ''With little domestic inflationary pressure we expect the benign price environment to continue,'' she added.

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