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Increase in rate of inflation in June

Figures from the Central Statistics Offices show the consumer price index rose 0.6% in June from the previous month to stand 2.3% higher for the year, with higher fuel prices nudging up transport costs.

The figure for May was 1.7%. The rise in annual inflation was larger than economists had expected.

The most notable changes during the month were increases in transport, which was up 1.5%, and a 0.8% rise in housing, water, electricity, gas and other fuels.

Food and non-alcoholic beverages were up 0.5%. There were decreases of 0.4% in miscellaneous goods and services with clothing and footwear down 0.4%.

The biggest increases of the year were education which was up 6%, health up 5.8% and alcohol and tobacco which increased 3.6%. Housing, water, electricity, gas and other fuels increased by 2.7%.

The EU Harmonised Index of Consumer Prices increased by 0.5% in the month. This compares to an increase of 0.1% in June of last year. As a result the annual rate of inflation as measured by HICP rose to 2.5% up from 2.1% in May.