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Monthly inflation down in December but annual rate increases by 2.5pc

INFLATION rose by 2.5pc in the year ended December but fell by 0.3pc month-on-month, according to the latest figures from the Central Statistics Office.

European Central Bank interest rate cuts towards the end of last year meant a fall in mortgage payments which lowered the monthly figure.

But mortgage interest payments, electricity, gas and other fuels charges increased by 8.4pc during the year while the cost of education was up 8.9pc.

There were drops in the price of furniture, household equipment and restaurants and hotels.

On a monthly basis mortgage interest payments fell as well as the price of clothing and footwear.