Ireland sees first monthly fall in consumer price index since 2020

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(Alliance News) - Inflationary pressures in Ireland eased at the start of 2022, though remain elevated, data showed on Thursday.

Consumer prices jumped 5.0% year-on-year in January, remaining high by historical levels but slowing after December's 5.5% increase.

"Prices have been rising on an annual basis since April 2021, with annual inflation of 5% or more each month since October," said Colin Cotter, statistician at the Central Statistics Office.

More encouragingly, prices fell 0.4% month-on-month in January, marking the first monthly fall in the consumer price index in 15 months. Cotter noted this decreased followed "the longest consecutive sequence of month-on-month inflation since the monthly CPI series began in 1997."

"The division with the largest monthly decrease was Clothing & Footwear, reflecting the effect of January sales. Transport prices were down 3.7% in the month, reflecting lower prices for airfares and services in respect of personal transport equipment compared to December 2021," said Cotter.

On a harmonised basis - calculated for ECB comparison purposes - prices rose 5.0% year-on-year in January and fell 0.4% month-on-month.

By Lucy Heming; lucyheming@alliancenews.com

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