Oil price falls should push down inflation: BoI

28/09/2006 - 09:59:48
Recent falls in the price of crude oil should translate into sharp declines in inflation rates across the major economies in September and October, according to the September Bank of Ireland Global Markets Economic Research Bulletin published today.

"Ireland should see the benefits in the September and October CPI figures, though higher mortgage costs stemming from the ECB’s August rate rise will dampen the impact slightly," the bank said today.

"Nevertheless, the annual inflation rate may still decline to 4.2% from 4.5% in August, which would reduce the chance of inflation hitting 5% later in the year as further interest rate increases kick in."