Inflation steady in June

The annual rate of inflation remained unchanged in the month of June at 2.7%, new figures today from the Central Statistics Office showed.

The annual rate of inflation remained unchanged in the month of June at 2.7%, new figures today from the Central Statistics Office showed.

Inflation was also recorded at 2.7% in May, after having risen to 3.2% in April.

The Consumer Price Index (CPI) fell by 0.1% in the month.

The most significant monthly price changes were decreases in Clothing & Footwear (-5.0%) and Furnishings, Household Equipment & Routine Household Maintenance (-0.8%).

There were increases in Restaurants & Hotels (+0.6%) and Housing, Water, Electricity, Gas & Other Fuels (+0.5%).

Commenting on the figures, business groups however pointed out that Irish inflation remains high.

“High inflation is damaging to individuals, to businesses and to the economy generally," said Avine McNally of the Small Firms Association (SFA).

"The most worrying aspect is that, for the main part, inflation is being driven by increases in public utility costs, such as housing, water, electricity, gas (9.3% increase) and transport, and these costs are daily input costs for businesses,” said McNally

ISME Chief Executive Mark Fielding said that Ireland, despite the recent drop in inflation, is not as cost competitive as it should be.

“Irish businesses have cut their controllable costs to the bone and are clawing back lost competitiveness but their efforts are being sabotaged by increased state costs, particularly in the areas of energy, waste, local charges and transport.”

“The new Government’s initial promise to deal with barriers to competition and high costs in sheltered sectors seems to have waned," he added.

"The announcement of increased energy prices, despite massive state-owned utility profits could prove to be the final straw for many hard pressed SMEs."

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