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Prices rose 9.1pc in year to the end of July but pace of increases has slackened


Food inflation is adding to higher cost of living

Food inflation is adding to higher cost of living

Food inflation is adding to higher cost of living

Irish prices rose 9.1pc in the year to July which continues a 38-year high on a twelve month basis.

There are some signs the pace of increase slackened however. Prices rose 0.4pc in the month to July, according to the Central Statistics Office, driven by rising transport and food costs.

Monthly inflation has dropped from 1.9pc in March although the 12 month cumulative that's still extremely elevated. Inflation in July 2022 was the same as in July 2021.

Housing, water and energy drove the yearly inflation spike, rising 21.6pc in the 12 months to July.

Energy alone was up 1.6pc in the month and 50.4pc since July 2021.

The last time annual headline inflation was higher was in the three months to June 1984, when prices rose by 9.7pc.

Miscellaneous goods and services (-1pc) and Education (-0.7pc) were the only items to show a fall year-on-year in July.

Clothing and footwear costs dropped 5pc month on month, the only category to show a decrease in price.

Aside from energy, food is the fastest-rising inflation category.

The price of an 800g white sliced pan has risen 18 cents in the year to June 2022.

A 500g packet of spaghetti is up 21 cents.

A two-litre carton of full fat milk has increased by 27 cents in the year.

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The average price of Irish cheddar (per kilogram) rose by €1.07, while butter prices were up 48 cents per pound.

However, the average price for 2.5kg of potatoes fell by 20 cents in the 12 months to June.

The national price of a pint of stout was €5.13 in June, up 17 cents in the year, with a pint of beer up 22 cents to €5.53.

New US data out this week shows the headline rate of annual inflation dipping 0.6pc to 8.5pc in July, undershooting expectations.

But US central bankers urged caution, saying it is too early to say whether inflation has peaked.

Economists predict Irish inflation could hit double digits by the autumn.

In the UK, inflation hit a new 40-year high of 9.4pc in June, with central bankers predicting energy prices could push price rises up to 13pc over the next few months.

Recent CSO data shows the inflationary spike in Ireland is hitting older people, single people and local authority renters hardest.

Rural households are also being hit harder by price surges than those in towns and cities, the research found.

Last month the EU’s statistics agency – which measures a slightly different basket of goods to the CSO – estimated Irish prices rose 9.6pc in the year to July, also holding steady on June’s hike.

Eurozone inflation rose slightly to 8.9pc in July, compared to a year earlier, up from 8.6pc in June.

Ten eurozone countries registered double-digit inflation in July, including two of the bloc’s largest economies, Spain (10.8pc) and the Netherlands (11.6pc).

German prices rose 8.5pc, up slightly on June, while France saw 6.8pc inflation.

Lithuania, Latvia and Estonia saw inflation above 20pc in July.

Eurozone energy prices rose 39.7pc, easing slightly from June.

The ECB raised interest rates last month to try to tame inflation, risking a hit to economic growth.

But the bloc’s economy has held steady so far, with eurozone GDP expanding 0.7pc in the three months to June, while the EU grew 0.6pc compared to the previous quarter, Eurostat said Friday.

First-quarter growth was 0.5pc in the eurozone and 0.6pc in the EU, largely on the back of an unexpected spike in Irish GDP.

But economists predict a ‘technical’ recession in the latter half of the year as ECB policy takes effect.

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