Friday 19 October 2018

January sales lead to inflation fall - CSO

(Stock image)
(Stock image)

Charlie Weston, Personal Finance Editor

Retail competition and the traditional discounting at the start of the new year meant the consumer price index fell to 0.2pc last month when compared with the same month last year.

Falls were recorded in the cost of clothing and footwear and household furnishings, according to the inflation figures issued by the Central Statistics Office (CSO).

The drop in the inflation rate in January was despite rises in the cost of alcohol and communications, which covers telecoms, broadband and TV services.

A number of telecoms firms have imposed price hikes in the past few weeks.

In January there were rises in the cost of electricity and gas, according to the CSO.

The CSO said motor insurance costs are down almost 12pc in the year to January.

But it is understood from brokers that few drivers are currently getting lower renewal quotes than they paid for cover last year.

Economists expect inflation to pick up later in the year.

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