Inflation in Ireland outpaces eurozone average in July

/ 29th July 2022 /

Annual inflation in Ireland stabilised at 9.6% in July but still outpaced price increases in the eurozone (8.9%), according to the latest EU Harmonised Index of Consumer Prices (HICP).

The index noted that inflation increased 0.4% in Ireland this month, compared to a 0.1% increase across the euro area, with Ireland more or less average -- eight eurozone countries had lower rates of annual inflation than Ireland, compared to 10 with higher.

Estonia had the highest estimated annual rate of inflation this month at 22.7%, beating out Lativa (21%) and Lithuania (20.8%), while Malta had the lowest at 6.5%, just below France (6.8%).

Eurostat, the EU statistics agency, said inflation was largely driven by the cost of energy, which has risen 39.7% year-on-year, down from 42% in June, but inflation in the price of food, alcohol and tobacco (9.8%), non-energy industrial goods (4.5%) and services (3.7%) picked up in July.

In Ireland, energy prices have risen by 50.4% since last July, but fell 1.6% this month.

Inflation in Ireland — Energy prices were again the main driver of inflation in July. (Pic: Getty Images)

"The latest flash estimate of the Harmonised Index of Consumer Prices (HICP), compiled by the CSO, indicates that prices for consumer goods and services in Ireland are estimated to have increased by 9.6% in the past year," said Anthony Dawson, statistician at the CSO.

"Eight of the 19 Eurozone countries had a lower annual increase than the estimate of 9.6% for Ireland while 10 countries had higher rates. Estonia had the highest estimated annual inflation at 22.7% while Malta had the lowest at 6.5%.

Looking at the components of the flash HICP in Ireland for July 2022, Energy is estimated to be down 1.6% in the month but up 50.4% since July 2021. For the Eurozone overall, energy prices were up by 0.4% in the month and up by 39.7% on an annual basis."

The CSO's own consumer price index, published separately to the Eurostat figures, showed price inflation of 9.1% in June. The European Central Bank last week raised interest rates 0.5 points to combat inflation and return it to its target level of 2%.

(Pic: Getty Images)