The inflation rate for the month August 2016 was 0.4%. The main contributor to the increase was an upward movement in the index for ‘Housing, Water, Electricity, Gas and Other Fuels’ which advanced 1.8%. Notably the Division recorded the highest movement for a second consecutive month, due mainly to a rise in the rates for both electricity and water resulted in the groups ‘Electricity, Gas and
Other Fuels’ and ‘Water Supply and Miscellaneous Services Related to the Dwelling’, showing an inflation rate of 3.1% and 1.7% respectively. The index for the group ‘Rentals for Housing’ recorded an increase of 0.1%, while ‘Maintenance and Repair of Dwelling’ recorded a negligible movement.
The ‘Food and Non-Alcoholic Beverages’ division registered an increase of 0.4% for the month of August 2016. The group ‘Food’ advanced by 0.4% driven by a 0.9% increase in the index for ‘Vegetables and Starchy Foods’. Prices continued to move upwards for the items Irish Potato, Yam, Sweet Pepper and Tomato, while an increase was also recorded for items in the ‘Fruits’ class by 0.6%. The index for ‘Non– Alcoholic Beverages’ rose by 0.2% with increases in the classes ‘Coffee, Tea and Cocoa’ of 0.3% and ‘Mineral Waters, Soft Drinks, Fruit and Vegetables Juices’ up by 0.2%.
‘Transport’ was the only division to record a negative movement in its index, declining by 0.2%. The decline was attributed to decreases in petrol prices, however the downward movement of the index was tempered by increases in air fares.
The Calendar year-to-date inflation rate was 0.3%, while the fiscal year-to-date and point-to-point rates (August 2015 – August 2016) was 1.6% and 1.8% respectively.
Individual divisions saw the following changes:
1. Food and Non-Alcoholic Beverages: (0.4%)
2. Alcoholic Beverages and Tobacco: (0.1%)
3. Clothing and Footwear: (0.1%)
4. Housing, Water, Electricity, gas and Other Fuels: (1.8%)
5. Furnishing, Household Equipment and Routine Household Maintenance: (0.2%)
6. Health: (0.2%)
7. Transport: (-0.2%)
8. Communication: (0.0%)
9. Recreation and Culture: (0.9%)
10. Education: (0.0%)
11. Restaurants and Accommodation Services: (0.0%)
12. Miscellaneous Goods and services: (0.2%)