Rate of inflation continues to fall back but prices still rising

The figures mean prices are still going up but just not rising as fast as previously.

The EU Harmonised Index of Consumer Prices for Ireland is estimated to have risen by 1.6pc in the year to April, the Central Statistics Office (CSO) said.

In the month of April, prices rose by 0.2pc when compared with the previous month. This compares with the harmonised inflation rate of 1.7pc in Ireland in the year to March.

The CSO said the annual increase of in the rate of inflation in the Eurozone in the year to March was 2.4pc.

Today's News in 90 seconds - 29th April 2024

The figures mean prices continued to rise last month, but the rate of increase is easing, according to a measure of inflation used across the Eurozone.

Experts said it could take at least two years before people get back the purchasing power and standard of living they had before inflation took off after the Russian invasion of Ukraine.

Food prices have jumped by up to 25pc cumulatively over the last two to three years.

The CSO said food prices were estimated to have gone up by 0.6pc in the last month, and rose by 2.6pc in the last 12 months.

The harmonised index of consumer prices, excluding energy and unprocessed food, is estimated to have grown by 2.6pc in the last year.

CSO statistician Anthony Dawson said: “The latest flash estimate of the Harmonised Index of Consumer Prices (HICP), compiled by the CSO, indicates that prices for consumer goods and services in Ireland are estimated to have increased by 1.6pc in the past year.”

He said energy prices were estimated to have gone up by 1pc in the month but decreased by 6.3pc since last year.

Food prices are estimated to have increased by 0.6pc in the last month and grew by 2.6pc in the last 12 months.

Transport costs fell by 0.5pc in the month and were up by 4.3pc in the 12 months to April 2024, Mr Dawson said.

The fall in the inflation rate is despite a string of price rises imposed on households in April.

Excise duty on petrol and diesel went up at the start of the month as the Government moves to restore the full rate on motor fuels.

Broadband, TV and mobile phone services also rose in the month, with Laya Healthcare imposing another rise in the cost of health insurance.

Meanwhile, grocery price inflation has dropped to its lowest level in over two years, according to research group Kantar. However, shoppers are still facing price increases at the till.

A survey of more than 30,000 products in Irish supermarkets revealed that shoppers paid 2.9pc more for these goods in the 12 weeks to April 14 compared with the same period last year.

This was down from the 16.8pc reported by Kantar in April last year and was a further decline from 3.7pc recorded in the three months to March 17 this year.

Grocery price inflation has now been falling for a year, Kantar reported.

Irish consumers were focused on securing a deal ahead of Easter, with 24.9pc of purchases in the 12-week period on promotion.

More than 43pc of Easter eggs purchased in 2023 were on promotion. The number of chocolate eggs purchased jumped 22pc compared to 2023 levels, with a record €9.9m spent on these treats this year.

Sales of supermarkets’ own brand products grew by €97m year-on-year as consumers opted for the cheapest options on sale in supermarkets. Branded items also recorded growth, up 3.9pc over the three-month period.