Annual inflation falls to 3-year low of 1.1% - flash data

Inflation in Ireland is continuing to ease, according to the latest figures from the Central Statistics Office.

The EU Harmonised Index of Consumer Prices (HIPC) is estimated to have increased by 1.1% in the 12 months to August and is up 0.1% since July.

This compared to 1.5% in the 12 months to July when the figures for other countries using the euro were 2.6% and is the lowest rate since April 2021.

A drop in energy prices has helped lower Ireland's inflation as costs fell 9.5% in the 12 months to August and 0.6% in the month.

However, food prices are rising - they are up 0.1% last month and 2% in the past year.

The HIPC, excluding energy and unprocessed food, is estimated to have gone up by 2.3% since August 2023.

Transport costs have decreased by 0.9% in the month and risen by 4.3% in the 12 months to August 2024.

Commenting on today's CSO figures, the Minister for Finance Jack Chambers said the period of elevated inflation now appears to have passed and we are now back on a more stable trajectory.

"This easing in inflation will support an improvement in real wages which should help drive growth in our domestic economy over the remainder of this year," Mr Chambers said.

"However, pockets of inflation remain with core inflation still in excess of 2% and I am acutely aware that many households and businesses are still struggling as price levels throughout the economy remain elevated," he said.

The Finance Minister said that despite the strong position of the economy at present we are living in an era of great uncertainty, geopolitical tensions and a changing economic landscape.