Prices Fall By 2.6% In The Year To March

Consumer Prices in March, as measured by the Consumer Price Index (CPI), showed no change in the month. This compares to an increase of 0.9% recorded in March of last year.

As a result, prices on average, as measured by the CPI, were 2.6% lower in March compared with March 2008.

The EU Harmonised Index of Consumer Prices (HICP) increased by 0.1% in the month, compared to an increase of 0.9% in March of last year.

As a result, prices on average, as measured by the HICP, were 0.7% lower in March compared with March 2008.

The most notable changes in the year were decreases in Housing, Water, Electricity, Gas & Other Fuels (down by 15.1%), Clothing & Footwear (falling 8.6%) and Transport (down 6.7%).

There were increases in Miscellaneous Goods & Services (up 9.1%), Alcoholic Beverages & Tobacco (increasing by 5.9%), Education (up by 5.5%) and Health (up 4.7%).

Services prices fell by 1.7% in the year to March, while Goods fell by 3.7%.

The most significant monthly price changes were decreases in Housing, Water, Electricity, Gas & Other Fuels (down 1.7%) and Food & Non-Alcoholic Beverages (down 0.5%).

There were increases in Clothing & Footwear (up 4.6%), Miscellaneous Goods & Services (up 1.0%) and Transport (up 0.5%).

The main factors contributing to the monthly change included a fall in the Housing, Water, Electricity, Gas and Other Fuels section caused by a further decrease in average mortgage interest repayments and a fall in the cost of home heating oil.

Food and Non Alcoholic Beverages fell due to lower prices for a wide range of food items, while Clothing and Footwear prices increased due to a further recovery in prices following the traditional January Sales.

Prices in the Miscellaneous Goods and Services sector increased due to higher charges for medical, house and motor insurance.