Wednesday, August 10, 2022

Irish inflation hits 38-year high of 9.6 percent in June – Eurostat

Irish prices rose about 10 percent in June, much higher than the eurozone average, according to a flash estimate from the European Union’s statistics agency.

Inflation here reached 9.6 percent compared to June 2021, the highest rate in nearly four decades, driven by increased energy costs due to the war in Ukraine. This was up from 8.3 per cent in May.

The last time consumer prices were higher was in June 1984, when inflation – which was then measured quarterly – peaked at 9.7 pc. The last time inflation was in double digits was in March 1984, when it reached 10.2 percent.

The Central Statistics Office said Irish energy costs were up 54 percent year over year and up 6.2 percent from May. The CSO will publish a full analysis of Irish inflation on 14 July.

The CSO – which uses a slightly different basket of goods to measure prices – estimates prices have risen 7.8 percent in May.

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Today’s estimate puts Irish inflation at nearly a full point above the eurozone average, according to the European Union’s harmonized calculations.

Eurozone inflation is expected to come in at 8.6 pc in June, Eurostat said, from 8.1 pc in May, a new euro-era high.

Eurozone energy prices rose 42 percent for the month, with food, alcohol and tobacco prices up 8.9 percent.

Eurostat said prices for industrial goods rose 4.3 percent and services by 3.4 percent.

Irish inflation was dwarfed by price increases in Estonia and Lithuania by more than 20 percent. Latvia (19pc), Slovakia (12.5pc), Greece (12pc), Slovenia (10.8pc), Belgium (10.5pc) and Spain (10pc) also saw double digit rise in prices.

German inflation eased slightly to 8.2 percent in June, due to state subsidies, as did Dutch inflation, which fell to 9.9 percent from 10.2 percent in May.

Data from the Central Statistics Office this week showed that food prices in Ireland were 17 percent above the eurozone average in 2021, the second most expensive in the 19-nation bloc and third in the 27-member EU.

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Milk, cheese and eggs were 25 percent higher than the EU average, oils and fats 22 percent higher, and breads and cereals 20 percent higher.

Ireland was the second most expensive country in the European Union in terms of alcohol, with prices twice the EU average, and the most expensive country for tobacco.

Public Expenditure Minister Michael McGrath told RTE Radio today that this autumn’s budget will include “a very significant package of one-time measures”.

It comes after the Irish Independent reported that the extension of electricity credits could see households see electricity bills of less than €200 next year.

The Irish Times said this week that the budget could be moved from mid-October to the end of September to compensate for rising prices.

Nation World News Desk
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