Inflation saw a 0.4% drop in November according to the Central Statistics office. The rate, which now stands at 0.8%, was strongly influenced by falling petrol prices at the pumps.
Motorists will probably have noticed recent falls in fuel bills as a result of lower global oil prices, and no doubt this will have come as a pleasant surprise in the run up to Christmas.
Consumers should notice a slight increase in other bills though, as energy prices saw a small rise, and housing costs rose 3%, mainly due to increased mortgage repayments.
Merrion economist Alan McQuaid reports that continued weak consumer demand will put downward pressure on prices in the months ahead. This is in line with similar reports from earlier in the year, such as that from Quintas who said that “While the cost of doing business in Ireland has reduced, we still need to work on our competitiveness. With much emphasis on wage reductions, other costs which could be focused on are high rents, insurance or childcare costs.”
For some more reading about how Irish inflation compares to the Eurozone as a while, head over to The Irish Economy blog.
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