The average price level fell in November for the first time since the beginning of the year, as evidence emerged that the worst effects of the summer's oil price increases may be over.
The latest Consumer Price Index (CPI), released by the Central Statistics Office yesterday, shows prices declining in November by 0.2 per cent. The annual rate of inflation as measured by the CPI slowed from 3 per cent in October to 2.6 per cent in November.
The monthly fall was influenced by a significant fall in energy prices, down 3.6 per cent in the month as well as in Transport prices, which were down 1.5 per cent in the month due to lower fuel prices. There were also noticeable falls in the prices for Restaurants and Hotel services, Food and Non-Alcoholic Beverages and Alcoholic Beverages and Tobacco.
However prices continued to rise on an annualised basis, and were markedly higher for government services than for other categories.
Prices for the category of Housing, water, electricity, gas and other fuels rose by 11.1 per cent. The Health and Education sectors saw prices rise by 6.2 per cent and 4.9 per cent, respectively.
Annual price inflation continues to be negative in Clothing and Footwear, at -1.5 per cent, Furnishings, Household Equipment and maintenance, at -0.9 per cent and Food and non-alcoholic beverages at - 0.8 per cent. For all categories of goods the annual rate of inflation was 0.9 per cent, while the rate for services was 4.1 per cent.
Data for the Harmonised Index of Consumer Prices (HICP) is available for the month of October for all EU countries and measures Ireland's inflation rate at 2.7 per cent, compared with an EU average of 2.4 per cent.
