Annual Inflation Up To 5.0%

Consumer Prices in June increased by 0.5% in the month, 0.3% more than they rose in June of last year. As a result, the annual rate of inflation increased to 5.0%, up from 4.7% in May 2008.

The EU Harmonised Index of Consumer Prices (HICP) increased by 0.5% in the month, compared to an increase of 0.3% in June 2007. The annual rate of inflation, as measured by the HICP, increased from 3.7% in May to 3.9% in June.

The main factors contributing to the monthly increase included higher airfares, petrol and diesel prices, restaurants and hotels charging higher prices for hotel and other guest accommodation, consumers paying higher average mortgage interest repayments and further increases in the cost of home heating oil and, increases in the price of cigarettes.

The annual rate of inflation for services was 5.3% in June, while goods increased by 4.6% in the year.