The latest figures from the Central Statistics Office show that higher mortgage interest repayments as well as more expensive electricity and bin charges led to a rise in inflation in January. The CSO says that the annual rate of inflation rose to 3% last month from 2.5% in December.
This is the highest rate since last October.
The CSO says that consumer prices in January decreased by 0.3% in the month. This compared to a decrease of 0.8% in January of 2004 and as a result, the annual rate of inflation increased to 3%, up from 2.5% in December.
The annual rate of inflation for goods was 1.4% in January, while the corresponding rate for services was 4.4%.
January saw an increased in average mortgage interest repayments, as the main bank increased their interest rates after the ECB rate increase. There were also increases in the prices charged for electricity and refuse collection. Health costs also rose due to an increase in hospital charges.
Prices of clothing, footwear and furnishings fell last month with the traditional January sales, while prices for motor and home insurance were also lower.
