Prices continue to rise but rate of increases eases off

Latest figures from the Central Statistics Office (CSO) show that the rate of inflation in April was 2.6pc.

This was down from an annual increase of 2.9pc in the year to March.

It is the sixth consecutive month where the inflation rate was lower than 5pc, the CSO said.

However, experts have pointed out that a fall in the rate of inflation does not mean prices are coming down. The figures mean prices are still going up, but just not rising as fast as previously.

Consumer prices grew by 0.2pc in the month between March and April this year.

Price rises implemented by telecoms firms for telephone, mobile, TV and broadband services last month and higher alcohol prices were behind the rise in prices in the month.

A 17pc surge in the cost of package holidays was largely behind the rise in prices in the last year.

The controversial hike in excise duty on petrol and diesel in April, as the Government moves to restore the full rate of excise duty, saw the cost of petrol and diesel rise by 11.4pc in the month when compared with prices last year.

Food prices were up by 2.5pc in the month compared with a year ago.

CSO statistician Anthony Dawson said the price of a 2.5kg bag of potatoes was up 61c.

There was also a rise in the price of spaghetti.

However, there were decreases in the price of Irish cheddar cheese per kg, with it falling by 26c.

A pound of butter fell in price by 15c compared with a year ago, and two litres of full fat milk was down in price by 9c when compared with April 2023.

The CSO said there were also rises in the cost of motor cars, the maintenance and repair of personal transport equipment and services in respect of personal transport equipment when compared with last year.

These increases were partially offset by lower prices for airfares.

Repeated hikes in health insurance premiums were also picked in the consumer price index by the CSO.

And there were increases in prices for hairdressing salons and personal grooming.

Motor premiums were up again by 5.9pc in April when compared with a year previously.

This means the annual cost of motor insurance rose for the eighth consecutive month in a row.

Going in the opposite direction was the price of clothing and footwear, which was down by 6.7pc in the past year.

There were also slight falls in the cost of furnishings, household equipment and household maintenance.

The figures mean prices continued to rise last month, but the rate of increase is easing, according to a measure of inflation used across the Eurozone.

Experts said it could take at least two years before people get back the purchasing power and standard of living they had before inflation took off after the Russian invasion of Ukraine.

Food prices have jumped by up to 25pc cumulatively over the last two to three years.