Figures from the Central Statistics Office today show that the consumer price index decreased by 0.3% in July, mainly due to the impact of summer sales.
This compares to a decrease of 0.8% in July 2003 and as a result, the annual rate of inflation rose to 2.7%. The figure had stood at 2.3% in June.
The CSO said the annual rate of inflation for goods was 1.3% in July while the corresponding rate for services was 4%.
Despite concerns from some in the tourist industry, the holiday season has seen prices in hotels and restaurants go up with accommodation up 10% compared to last year. The price of food and drink sold in licensed premises was also up.
But there were bargains to be had in the sales which saw footwear and clothing prices fall by almost 11%. The price of food and household furnishings also fell.
Transport costs were up with increases in air fares, boat fares and rail fares. This is despite a dip in the cost of petrol and diesel in July and before the most recent upswing in the price of oil had taken effect.
The most notable changes in the month were increases in restaurants and hotels (up 1.3%) and transport (up 0.4%). July also saw decreases in the clothing and footwear (down 10.8%), furnishings and household equipment (down 1,8%) and food (down 0.5%).
The figures also show that the EU Harmonised Index of Consumer Prices decreased by 0.4% in the month. This was the same decrease seen in July of last year and as a result, the annual rate of inflation as measured by HICP remained unchanged at 2.5%.
The European Central Bank, in its monthly bulletin published this morning, said the implications for inflation across the eurozone of the continued high price of oil was a cause for concern.
