Official figures show that the annual rate of inflation slowed to 8.7% in August – down from 9.1% in July.

This was the first drop in the annual rate since January, while the monthly increase of 0.2% in prices was also the smallest since January.

The Central Statistics Office (CSO) figures show, however, that the annual rate has now been above 5% for 11 months in a row.

The energy crisis is still the main contributor to inflation, with the biggest annual increase, of just over 20%, coming in the category that covers housing, water, electricity, gas, and other fuels.

Rents and mortgages rise

A breakdown of that sector shows that electricity costs were up 38% over the year, while gas prices jumped by 56%, and home-heating oil costs surged by 73%.

Electricity and gas prices continued to rise during August, while higher rents and mortgage repayments also contributed to inflation.

Transport costs were also up by almost 15% over the 12-month period, pushed up by diesel prices that were up almost 35%, and 23.5% higher petrol prices. Air fares also rose significantly, by 34%.

There was a fall in petrol and diesel prices during August, however, which meant that transport costs fell by 2% during the month.