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Irish inflation hits 38-year high of 9.6pc in June – Eurostat

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Food prices are expensive in this country.

Food prices are expensive in this country.

Food prices are expensive in this country.

Irish prices surged by almost 10pc in June, well above the eurozone average, according to a flash estimate from the EU’s statistics agency.

Inflation hit 9.6pc here, compared to June 2021, the highest rate in almost four decades, driven by surging energy costs due to the war in Ukraine. It was up from 8.3pc in May.

The last time consumer prices were higher was in June 1984, when inflation - which was measured quarterly at the time - hit 9.7pc. The last time inflation was in double digits was in March 1984, when it hit 10.2pc.

Irish energy costs were up 54pc year on year, the Central Statistics Office said, and up 6.2pc since May. The CSO will publish a full breakdown of Irish inflation on July 14.

The CSO – which uses a slightly different basket of goods to measure prices – estimates prices here rose 7.8pc in May. 

Today’s estimate brings Irish inflation almost a full point above the eurozone average, according to the EU’s harmonised calculations.

Eurozone inflation is expected to come in at 8.6pc in June, Eurostat said, up from 8.1pc in May, a new euro-era high.

Eurozone energy prices rose 42pc in the month, with food, alcohol and tobacco prices up 8.9pc.

Industrial goods were up 4.3pc and services prices rose 3.4pc, Eurostat said.

Irish inflation was dwarfed by price hikes of more than 20pc in Estonia and Lithuania. Double-digit price hikes were also seen in Latvia (19pc), Slovakia (12.5pc), Greece (12pc), Slovenia (10.8pc), Belgium (10.5pc) and Spain (10pc).

German inflation eased slightly to 8.2pc in June, on the back of state subsidies, as did Dutch inflation, which fell to 9.9pc from 10.2pc in May.

Data from the Central Statistics Office out this week showed food prices in Ireland were 17pc above the eurozone average in 2021, the second most expensive in the 19-country bloc and third most expensive in the 27-member EU.

Milk, cheese and eggs were 25pc higher than the EU average, oils and fats were 22pc higher, and breads and cereals were 20pc higher.

Ireland was the second most expensive country in the EU for alcohol, with prices double the EU average, and was most expensive for tobacco.

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Public Expenditure Minister Michael McGrath told RTE radio today the budget this autumn will include “a very significant package of one-off measures”.

It comes after the Irish Independent reported that households could see electricity bills reduced by another €200 next year, in an extension of the electricity credit.

The Irish Times said this week that the budget may be brought forward to the end of September, from mid-October, to offset spiralling prices.


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