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Monday 5 December 2016

Retailers not passing on benefits of sterling value collapse to consumers - CSO

Charlie Weston Personal Finance Editor

Published 13/10/2016 | 11:22

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File photo

Retailers are not passing on the benefits of the collapse in the value of sterling to consumers.

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New figures from the Central Statistics Office show that prices were unchanged in September.

This is despite the value of sterling crashing to 168 year lows against the dollar, and falling heavily when compared with the euro.

The CSO said overall prices fell by just 0.4pc in September, but were unchanged when compared with the same month last year.

Large amounts of consumer goods are imported from Britain, where the weakness of sterling has made these goods less expensive.

The CSO found there were increases in price of clothing and footwear and housing, water, electricity, gas and other fuels despite the collapse in the value of sterling compared with the euro.

But the rate of increase in motor insurance premiums seems to be easing, the latest inflation figures show.

Motor insurance premiums were up 0.3pc in September, and rose by 25.1pc in the year.

The annual rise in the cost of premiums had been running at 38pc earlier in the year.

The fall in the rate of increase in the cost of insurance may reflect the fact that a number of insurers have pushed up their rates so much that they are back making profits.

RSA and FBD are predicted to break even or make profits next year. Aviva is profitable.

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