Ireland: Harmonized inflation falls to over one-year low in July
Harmonized inflation dropped to 4.6% in July, which followed June’s 4.8%. July’s figure marked the weakest inflation rate since September 2021. The moderation was largely due to a slower increase in prices for food and non-alcoholic beverages. In addition, price pressures for transportation declined at a quicker rate.
Annual average harmonized inflation fell to 7.3% in July (June: 7.7%). Meanwhile, consumer price inflation fell to 5.8% in July, from June’s 6.1%.
Lastly, harmonized consumer prices rose 0.17% in July over the previous month, a smaller increase than the 0.77% rise logged in June. July’s result marked the softest rise in prices since January.
Our panelists expect inflation to continue to moderate through to the end of 2024. In line with the rest of the Euro area, the decline will be driven by the ECB’s recent rate hikes and a high base effect created by surging energy prices last year.