Inflation 8.5pc higher in February, reversing three-month trend

Food and non-alcoholic beverages saw price increases of 13.1pc overall. Stock image.

Sarah Collins

March 16 2023 11:25 AM

Prices rose 8.5pc in the year to February, reversing a trend that has seen the inflation rate slow since late last year.

Ireland’s consumer price index (CPI) was 7.8pc in the year to January. The rate of inflation had been falling since November.

The result is higher than the EU’s harmonised index of consumer prices, which found Irish prices rose 8.1pc in the year to February. The CPI measures a slightly different basket of goods.

Inflation also rose on average across the eurozone in February.

European central bankers meet today, where they are expected to raise interest rates by half a point on the back of rising prices, with more hikes expected in the months to come.

Within the CPI, housing, utilities and fuels saw the largest price jump, rising 26pc.

Energy drove the hikes, with electricity prices rising 62.7pc in the year and gas up 86.1pc, despite a recent fall in wholesale gas prices.

Food and non-alcoholic beverages was the division with the next-largest price increase at 13.1pc overall.

Within that category, sugar saw the highest price rise at 30.8pc. The price of frozen fish rose 26.9pc in the year to February. Fresh whole milk rose 26.8pc in price, eggs were up 22.9pc and butter was up 22.2pc compared with February 2022.

Education and miscellaneous goods and services were the only divisions to show a decrease in price compared with February a year ago.

Month on month, prices rose by 1.6pc, with clothing and footwear seeing the highest rise, at 5.8pc. Recreation and culture saw the second-highest monthly rise at 3.5pc.

Communications was the only item to fall in price in the month, the CSO said.

“Prices have been rising on an annual basis since April 2021, with annual inflation of 5pc or more recorded in each month since October 2021,” said Anthony Dawson, a statistician in the CSO’s prices division.

“The most significant increases in the year were seen in housing, water, electricity, gas and other fuels. Increased energy costs are reflected in the yearly growth of housing, water, electricity, gas and other fuels.”

The national average price of a number of items rose in February.

An 800g loaf of white sliced pan was up €0.24, an 800g loaf of brown sliced pan rose €0.23, two litres of full fat milk rose €0.48 and a pound of butter rose €0.69 compared with February last year.