Consumer price index increases by 8.9% in 12 months

The Consumer Price Index (CPI) increased by 8.9% from November 2021 to November 2022, which is a decrease from the annual increase of 9.2% in the 12 months prior to October 2022.

According to the CSO data released today, while the price of home heating oil decreased last month, food prices continued to rise.

Only two broad categories saw price decreases last month: off-license alcohol and education.

The CSO reported that prices increased across all other categories and that, after accounting for energy and food prices, so-called “core inflation” increased by 5.5% annually.

However, the overall rate of inflation did slow down as a result of lower home heating oil prices and stable prices for gas and electricity.

With an overall annual increase of close to 12%, food price inflation remained high. In comparison to a year ago, the price of milk has increased by a third, while the cost of sugar and poultry have increased by 25% and 17.5%, respectively.

Today’s CSO figures also show that rents continue to rise. They are up 11% compared to last year and recent interest rate increases have seen the cost of mortgage interest repayments rise by 21% compared to a year ago.

There is some speculation that inflation across the euro area may have peaked, with wholesale oil prices losing all their gains made this year.

It has prompted speculation that the European Central Bank may opt for a smaller interest rate increase when its Governing Council meets next week.

In addition to being down significantly from October, when energy companies implemented significant gas and electricity price increases, the CSO reported today that prices were 0.3% higher month over month.

According to today’s CSO data, electricity prices increased by 63.5% on an annual basis, while gas prices increased by 88.7%, home heating oil prices increased by 57.1%, and solid fuel prices increased by 46.8%.

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