Prices on average, as measured by the CPI, were 2.8% higher in August 2021 compared with the same month last years, new CSO figures show.
This is the largest annual change in prices in almost 10 years, since November 2011 when prices were up 2.9%.
The divisions with the largest increases in the year were:
- Transport (+10.2%),
- Housing, water, electricity, gas and other fuels (+7.3%),
- Restaurants and hotels (+3.4%).
There were decreases in clothing and footwear (-5.6%) and furnishings, household equipment and routine household maintenance (-0.5%) when compared to August 2020.
Prices have increased 0.6% in the month, which is the tenth month in a row that has shown monthly inflation, the longest sequence of monthly inflation since 2007.
Clothing and footwear costs were up 2.2% in the month of August, while housing, water, electricity, gas and other fuels were also up 2.1% in that month alone.
The rise of 3% in the Harmonised Index of Consumer Prices (HICP) for Ireland in August was in line with the flash estimate for the Euro area.
Statistician Colin Cotter said: “The Consumer Price Index (CPI) for August 2021 shows a rise in prices of 2.8% on average compared to August 2020. In August 2021, the largest increase in the year could be seen in transport (+10.2%).
“This increase was mainly caused by higher prices for petrol, diesel and motor cars, an increase in airfares and a rise in the cost of services in respect of personal transport equipment.”
Fuel
Fuel costs rose primarily due to a rise in the cost of electricity, gas, home heating oil and rents, in addition to higher mortgage interest repayments.
Restaurant and hotel costs rose mainly due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes, and an increase in the cost of hotel accommodation.
This is the tenth month in succession that prices have increased when compared to the previous month. This is the longest consecutive sequence of monthly inflation since 2007. During August of last year, prices fell by 0.1% in the month.