Alcohol and tobacco price rises behind inflation increase
Hikes in the cost of alcohol, tobacco and fuel were behind an increase in inflation in Ireland, from 3.8% in November to 4.2% in December, figures showed today.
The figures, released by the Central Statistics Office, also showed that prices rose 0.5% in the final month of last year.
The December figures bring the average annual inflation rate for 2001 to 4.9%, compared with 5.6% in 2000.
Increased taxes on drinks, cigarettes and motor fuel were announced in last year’s budget, and accounted for much of the increased inflation in December.
Tobacco prices rose sharply with costs increasing a full 2% during last year, influenced by a 10p increase in the cost of a packet of 20 cigarettes.
There were also sharp rises in the cost of transport, which rose 1.1% due to increased duties, as well as rising taxi fares, although motor insurance fell slightly.
Higher medical fees and greater costs for education, entertainment, video hire and public phone calls pushed services and related expenditure prices up 1%.
But at the same time housing inflation dropped 1.7%, indicating the end of the housing boom.
As interest rates continued to fall mortgage repayments became lower, but the figures noted that there were increases in private and local authority rents, home insurance and DIY materials.
