Annual inflation rate up slightly to 6.4% in September – CSO

October 14, 2023

The annual rate of inflation rose again in September to 6.4% compared to an annual rate of 6.3% in August, new figures from the Central Statistics Office show today.

The main drivers of inflation last month were increases in mortgage interest payments, clothing and footwear and home heating oil.

Mortgage interest payments rose by 6.3% in the month and are up 49.5% in the year.

Services inflation, of which mortgage interest payments are a part, rose on an annual basis by 9.1%.

If mortgage interest repayments were excluded, services inflation was 7%. Goods inflation, on an annual basis, was 3.1%.

Food inflation rose slightly during the month while the annual rate moderated to 7.5%. Some food items like meat, sugar and vegetables rose while other items like milk and butter continued to decline.

Rents rose by 0.8% in the month and stands 7.1% on an annual basis.

Tariff reductions announced by electricity and gas providers have yet to appear in the majority of household bills, so prices have not moved much yet.

They remain 23.5% higher for electricity than last year and 38.7% higher for gas on an annual basis.

Prices for both diesel and petrol rose last month but the price of flights were sharply discounted by 25%. Package holidays also fell last month but they are 39.4% higher on an annual basis.

Prices in pubs are up 7.3% on an annual basis while prices in hotels are up 6.4%.

The CSO figures show that prices for some personal services like hairdressing rose by 2.7% last month and are up 7.4% on an annual basis. Home insurance is also up 8% on last year.

Inflation has now been either at 5% or above for the past two years.

Core inflation, which excludes energy and food, was 6.1% in September.

The Harmonised Index of Consumer Prices (HICP), which is used to compare prices across the EU, rose to 5% in September. HICP does not include mortgage interest repayments.

Article Source: Annual inflation rate up slightly to 6.4% in September – CSO – Robert Shortt – RTE

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