Prices decreased in Ireland in November

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Inflation pressure has started to ease on consumers and businesses in Ireland as prices decreased by 0.8% in November 2023 compared to the previous month, according to the latest figures from the Irish Central Statistics Office (CSO).

Annual inflation also plummeted to 3.9% from 5.1% in October. 

In a monthly comparison, consumer prices fell partially due to a decline in the price of electricity, gas, and liquid fuels, which pushed housing and utility costs down by 2%.

Lower prices for package holidays also made recreation and culture expenses dip, while the cost of food and non-alcoholic beverages increased, as well as clothing and footwear prices by 0.4% and 0.5% respectively.

Annual inflation slams on the breaks

Annual inflation slowed to its lowest level in two years, to 3.9% in November. 

“The latest publication for the Consumer Price Index (CPI) shows that prices for consumer goods and services in November 2023 rose by 3.9% on average when compared with November 2022,” said Anthony Dawson from the CSO. “This was down from 5.1% in the 12 months to October 2023. This was the lowest CPI rate since September 2021 where the annual growth in the CPI was 3.7%.”

However, excluding energy and unprocessed food, core inflation rose by 5.6% in the 12 months to November 2023.

Prices rose the most in the recreation and culture sectors by 7.7%, followed by restaurants and hotels (7%) and food and non-alcoholic beverages (6.7%).

Prices softened mainly for housing & utilities (4.4% vs 7.2%), restaurants and hotels (7% vs 7.7%), food and non-alcoholic beverages (6.7% vs 7%), and recreation and culture (7.7% vs 9.7%). On the other hand, prices for alcoholic beverages and tobacco rose by 4.7% compared to the previous months’ 4.2%. 

The latest figures show a trend of easing price pressures across the Irish economy mainly due to falling energy prices and 10 straight interest rate hikes from the European Central Bank.