Inflation Rises To 5%

Consumer Prices in March, as measured by the CPI, increased by 0.9% in March. This compares to an increase of 0.7% in March of last year. As a result the annual rate of inflation increased to 5.0%, up from 4.8% in February 2008.

The E.U. Harmonised Index of Consumer Prices (HICP) rose by 0.9%, compared to an increase of 0.7% in March 2007. The annual rate of inflation, as measured by the HICP, increased from 3.5% in February to 3.7% in March.

The annual rate of inflation for Services was 5.7% in March, while Goods increased by 4.2% in the year.

The main factors contributing to the monthly change included an increase in transport costs due to higher petrol and diesel prices, as well as an increase in airfares.

Housing, water, electricity, gas and other fuel costs rose due to increases in average mortgage interest repayments, local authority rents and home heating oil.

Restaurant and hotels proices also were up due to higher prices for alcohol consumed on licensed premises, meals out and hotel accommodation.

Food and non-alcoholic drinks also rose due to price increases in a wide range of products including milk, meat and fish.