Ireland's annual inflation rate was expected to show a slight easing in April, despite worries over rising food prices after the foot-and-mouth outbreak, economists said today.
They predict a monthly rise in the consumer price index of between 0.5 and 0.6 per cent, giving a year-on-year rise of 5.2 to 5.3 per cent, marginally down on the previous month.
Irish inflation, at 5.4 per cent in March compared with a euro zone average of 2.6 per cent, has eased from a 16-year high of 7 per cent last November and - despite increases in February and March - economists expect the trend to be downwards in 2001.
Allied Irish Bank economist Ms Geraldine Concagh predicted a year-on-year increase of 5.3 per cent for April.
"The biggest factor on the monthly figures is higher food prices as a result of foot-and-mouth," she said.
Bank of Ireland chief economist Mr Dan McLaughlin agreed that the lessening impact of energy prices and mortgage rates compared with April 2000 should see inflation easing back but warned food prices could still upset the predictions.
IIB Bank economist Mr Austin Hughes forecast a year-on-year CPI for April of 5.3 per cent but warned food and energy prices could push the figure higher.
Economist Mr Alan McQuaid of Bloxham Stockbrokers in Dublin forecast an annual rate for April of 5.2 per cent.
"Despite the rise in annual inflation in the past couple of months, we believe the March figure will be the peak for the year," he said.