Ireland’s annual inflation rate dropped to 1.7 per cent in August, down from 2.2 per cent in July, according to new data from the Central Statistics Office (CSO).
This marks the lowest inflation rate since June 2021. According to the CSO, this is the first time in over two years that the official measure of annual inflation has fallen below the 2 per cent threshold.
The largest price hikes over the past 12 months were recorded in the hospitality sector, with restaurant and hotel prices climbing by 4.5 per cent. These increases were driven primarily by rising costs of food and beverages.
Miscellaneous goods and services, including hairdressing, jewellery, insurance, and childcare, saw a 4.1 per cent rise in prices.
Meanwhile, the cost of clothing and footwear dropped significantly, falling by 6.2 per cent compared to August last year. Housing, water, electricity, gas, and other fuel costs also eased by 1.9 per cent.
On a monthly basis, consumer prices inched up by 0.1 per cent in August. Clothing and footwear saw the largest monthly jump at 2.8 per cent, recovering from earlier sales, while restaurant and hotel prices rose by 0.5 per cent.