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January inflation moves up to 1.7%

Clothing prices - Big drop due to sales
Clothing prices - Big drop due to sales

The annual rate of inflation moved higher again in January, according to the Central Statistics Office.

The CSO said consumer prices rose at an annual rate of 1.7%, up from 1.3% in December and the highest annual rate since November 2008.

Prices dropped by 0.2% during January, but the annual rate moved up because the fall was not as big as in January last year.

Clothing and footwear prices fell by 9.3% in the month due to the traditional January sales, while furniture and household equipment prices were down 2.6%. But health prices rose 3.3% due to an increase in the cost of hospital services, while prices in the alcohol and tobacco category rose 1.5%, as prices of wines and spirits recovered.

Transport prices were flat in the month despite increases of more than 2% in petrol and diesel prices, as air fares dropped by almost 20%.

Rents crept up 0.1% in January, but are down 1.6% over 12 months, while mortgage interest costs fell back 0.1%, though they are up more than 24% from a year earlier.

The EU measurement of prices - which excludes mortgage repayment costs - fell 0.3% in the month to give an annual increase of 0.2%.