Irish service prices stay high as inflation falls

The annual rate of Irish inflation fell slightly to 2

The annual rate of Irish inflation fell slightly to 2.1 per cent in March, but service prices remain persistently high, according to the latest consumer price index.

The price of a "typical basket" of goods and service as measured by the Central Statistics Office shows that the annual rate of inflation for goods was 0.2 per cent in March; the corresponding rate for services was 3.8 per cent.

The most annual increases in consumer prices were in housing and energy costs (+9.3 per cent), education (+6.3 per cent) and health (+6 per cent).

The price of clothes and shoes has fallen by 3 per cent over the past 12 months. Furniture, office equipment and soft drinks have also fallen in price.

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The EU Harmonised Index of Consumer Prices (HICP) increased by 0.2 per cent in the month, compared to an increase of 0.4 per cent in March 2004.

The annual rate of inflation as measured by the HICP fell from 2 per cent in February to 1.9 per cent in March.