Inflation rate up slightly last month

Ireland’s inflation rate increased marginally last month following a decrease in November.

Latest Consumer Price Index figures from the Central Statistics Office show that December's rate of inflation rose by 0.1 per cent, as compared to a drop of 0.4 per cent for the previous month.

Overall prices in 2012 increased by 1.2 per cent for the year to December. The most notable changes in the year were recorded in education (+4.7 per cent), transport (+4.2 per cent), alcoholic beverages and tobacco (+2.7 per cent) and miscellaneous goods and services (+5.7 per cent).

There were decreases in the areas of communications (-5.4 per cent), furnishings, household equipment and routine household maintenance (-2.7 per cent) and housing water, electricity, gas and other fuels (-1.9 per cent).

In terms of monthly variations, the index recorded increases of 0.7 per cent in restaurants and hotels and of 0.6 per cent in both food and non alcoholic beverages and miscellaneous goods and services.

There was a decrease in inflation for the month applying to clothing and footwear of 1.3 per cent. Transport was one of the main factors contributing to the annual change and was due to the increased cost of fuel and motor taxation.

Higher health insurance premiums affected the variation in miscellaneous goods and services while restaurant and hotel prices adjusted on the basis of an increase in the cost of alcoholic products consumed on licenced premises.

Inflation in relation to home fuels fell on the back of lower mortgage interest payments which was partially offset by increases in the cost of electricity, gas, rents and home heating oil.