The headline annual rate of inflation is estimated to have slowed to 6.3% in April, compared to a rate of 7% in March, according to an initial estimate from the Central Statistics Office today.
Prices rose by 0.3% over the month.
Energy prices are estimated to have fallen by 1.3% in the month which has led to their annual rate slowing to 12.8%.
Food prices are estimated to have risen by 0.5% over the month and by 12.8% on an annual basis. This is slightly slower than the 13.5% annual rate recorded in March.
Core inflation, which excludes energy and unprocessed food, is estimated to have risen by 5.3% on an annual basis. This is a reduction in core inflation from an annual rate of 6.2% recorded in March.
These figures are estimates of the Harmonised Index of Consumer Prices, which is a measure of inflation used to compare price changes across the EU.
It closely tracks the Consumer Price Index which will be published in the coming weeks.
The estimate of euro area inflation for April will be published next week when the European Central Bank's Governing Council is also scheduled to meet.
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The ECB is widely expected to increase rates again.
Market analysts differ over whether the increase will be 0.5% or 0.25%.
The ECB's base deposit rate is currently 3%.
The Minister for Finance Michael McGrath described the reduction in the estimate for April inflation as "welcome news".
Welcome news today on inflation from the CSO. The flash estimate for the 12 months to April shows inflation has fallen from 7% to 6.3%, with core inflation coming in at 5.3%. This is in line with my Department's expectations for the year 1/3. https://t.co/QGmRq39CVD
— Michael McGrath (@mmcgrathtd) April 28, 2023
In a tweet, the Minister said the estimated reduction is "in line with my Department's expectations for the year."
The Minister also called on energy companies to pass on reductions in costs.
"It is vital that sectors - including energy - that have experienced reductions in costs fully pass those savings on to customers without delay," he stated.
