Consumer prices in July were 2.2% higher than they were in the same month last year, according to the Central Statistics Office.
It is the first time in many years that the rate of price increases here has breached the 2% threshold that Central Banks aim to keep inflation below.
The last time inflation was over 2% was in March 2012.
The last time the Harmonised Consumer Price Index, which was also 2.2% in July, was over 2% was in September 2012.
The European Central Bank recently indicated that it would tolerate inflation running at above 2% for a period.
Central Banks have reiterated that they believe the current inflationary trend to be temporary and associated with the reopening of the economy after months of pandemic restrictions.
Inflation across the euro zone was also running at 2.2% in July, according to Eurostat, the EU statistics agency.
The CSO’s figures indicate that the most notable changes in prices in the year to July were in the areas of transport, where prices were up almost 8%, home fuel prices – up 5.3% – and the hotel and accommodation sector, where prices increased by just over 3%.
Transport costs rose mainly due to higher prices for petrol, diesel and motor cars, an increase in airfares and a rise in the cost of services relating to personal transport equipment, the release said.
Consumer Prices in the month of July increased by 0.4%. During July of last year, prices fell by 0.2% in the month.
Article Source – Consumer price inflation breached 2% in July – CSO – RTE – Brian Finn