Inflation down, but soon up

Inflation in Ireland fell by a half percentage point in July, down to 4.2 percent, but economists for the Allied Irish Bank suggest that it is set to rise again soon.

“We reckon that the range of domestic price increases in the pipeline will push inflation back close to 5 percent by year-end,” said Austin Hughes of AIB.

“In the present climate, it is vital that we don’t add to competitiveness problems by boosting domestic costs unnecessarily. Unfortunately, the barrage of high-profile price increases in coming months will increase this risk.”

Central Statistics Office figures show that the price of home heating oil fell 1.7 percent over the period, while furnishings and other household costs were down by 1.5 percent.