Inflation eased in March but food keeps getting more expensive

Food price rises have overtaken energy

Inflation eased in March following a surprise spike the previous month. The pace of inflation in Ireland measured using the EU Harmonised Index of Consumer Prices (HICP) is estimated to have increased by 7pc in the 12 months to March 2023. While inflation rose during the month the pace of the increase in prices eased.

The annualised rate of inflation at been running at 8.1pc in February. The latest date shows energy costs dropped in the economy as a whole during March – that’s likely led by petrol and diesel costs which have been responding much faster than utilities to falling prices on wholesale markets.

Food prices rose in March, however, up 1.1pc in the last month and 13.5pc in the last 12 months.

The CSO flash estimates are subject to revision when the final results are published next month but are a guide to the situation as it develops.