Inflation Increases To 4.7%

Consumer Prices in May, as measured by the Consumer Price Index (CPI), increased by 0.8% in the month.

This compares to an increase of 0.4% in May of last year. As a result, the annual rate of inflation increased to 4.7%, up from 4.3% in April 2008.

The EU Harmonised Index of Consumer Prices (HICP) increased by 0.6% in the month, compared to an increase of 0.3% in May 2007. The annual rate of inflation, as measured by the HICP, increased from 3.3% in April to 3.7% in May.

The most notable changes in the year were increases in Housing, Water, Electricity Gas and Other Fuels (up 10.6%), Food and Non-Alcoholic Beverages (up 7.8%), Education (up 6.4%) and Health ( up 6.1%).

There were decreases in Clothing and Footwear (down 3.7%) and Furnishings, Household Equipment and Routine Household Maintenance (down 1.2%).

The annual rate of inflation for Services was 5.3% in May, while Goods increased by 4.0%.

Transport rose due to higher petrol and diesel prices, which were partially offset by a decrease in airfares.

Restaurants and Hotels rose due to higher prices for hotels, guesthouses and B&B accommodation.

Housing, Water, Electricity, Gas and Other Fuels increased due to higher average mortgage interest repayments and further increases in the cost of home heating oil, while private rents fell.

Alcoholic Beverages and Tobacco rose due to price increases for wine and cigarettes.