New figures from the Central Statistics Office show that consumer prices rose at their slowest rate for five years in 2004. The average inflation rate was 2.2%, down from 3.5% in 2003 and almost 5% in 2001.
The figures also show that average food prices were down by 0.3%. This is the first time food prices have fallen in 11 years, and only the second time in 25 years.
In addition, prices for miscellaneous goods and services, which includes motor insurance, also fell by 0.6% on average. This was the first time in 25 years that prices in this category registered a fall.
Today's inflation figures also show that the highest price increases over the past four years were in the education sector, where price rises averaging 36.5% were recorded. The second highest increases were in the health sector, where prices went up by 35.1% since the year 2000. These were both more than twice the 16% overall increase in consumer goods over the past four years.
They were also in sharp contrast to price reductions of 13.8% for clothing and footwear, and 2.3% for communications, over the past four years.
Today's consumer price figures also show that the annual rate of inflation at the end of December was 2.6%, down from 2.9% at the end of November. The decision by the Minister for Finance not to raise excise duties on cigarettes, petrol and alcohol was the main reason for the reduction in annual inflation in December.
Prices increased by 0.1% in the month, compared to increases of 0.4% in December 2003.
The CSO said that the most significant monthly price changes were increases in housing, water, electricity, gas and other fuels (up 1%) and food and non-alcoholic beverages (up 0.4%) and health (up 0.3%). There were decreases in alcoholic beverages and tobacco (down 0.3%) and transport (down 0.2%).
The EU Harmonised Index of Consumer Prices also increased by 0.1% in the month, compared with an increase of 0.4% in December 2003. The annual rate of inflation as measured by the HICP fell from 2.8% in November to 2.4% in December.
