The annual rate of inflation rose slightly to 2.2% in April from 2.1% in March, the latest figures from the Central Statistics Office show.
Consumer prices in April, as measured by the CPI, increased by 0.5% in the month. This compares to an increase of 0.4% in April of last year and as a result, the annual rate of inflation rose to 2.2%.
The annual rate of inflation for goods was 0.7% in April, while the corresponding rate of services was 3.7%.
In April, the price of home heating oil, electricity and mortgage interest repayments were higher, while transport costs rose by 2% as petrol and diesel became more expensive. Hotels charged higher accommodation costs while restaurants also charged more for eating out.
These increases were partially offset by a decrease in falling house and motor insurance costs, the CSO added.
The EU Harmonised Index of Consumer Prices increased by 0.6% in the month, compared to an increase of 0.3% the same time last year. The annual rate of inflation, as measured by the HICP, rose from 1.9% in March to 2.2% in April.
Commenting on the figures Austin Hughes, Chief Economist at IIB Bank said that the slight uptick in April inflation indicates that when inflation is low it is difficult to avoid some degree of increase in prices.
He said that while last month's rise was due to higher energy prices, in a number of other areas there are signs that the extent of downward pressures may not be as intensive as last year. He said the general trend in Irish consumer prices remains subdued but the he expects a slight uptick in prices to leave average inflation rate around 2.5% in 2005.
Eugene Kiernan, Head of Asset Allocation at Irish Life Investment Managers said that while goods inflation is almost absent it's on the services side of the economy that we are seeing the price pressures with 4% inflation.
He said while food and clothing prices are down on the year the cost of running a home continues to escalate with housing, water and electricity costs up over 10% on the year.
