Ireland’s inflation rate recedes

By Andrew Bushe

DUBLIN — A sharp fall in international oil prices and lower interest rates were the main reasons behind a drop in the annual inflation rate to 3.8 percent in November, down from 4.3 percent in October, according to figures released by the Central Statistics Office.

Consumers prices fell by 0.1 percent in the month, compared to an increase of 0.4 percent in November last year.

It is the first time in two years that inflation has been below 4 percent.

Government chief whip Seamus Brennan welcomed the figures, saying they showed the cost of living continued on a downward trend.

“Today’s figures, while not yet reflecting the effects of the budget, show the government’s anti-inflation measures are working,” Brennan said.

“In the current climate of uncertainty in the global economy, Ireland is performing well and maintaining its competitiveness.”

Inflation reached 7 percent last November, Ireland’s worst figure since August 1984. It had previously bottomed out at 1.2 percent in July 1999. It fell back to 5.2 percent in January and then began to increase before peaking again at 5.6 percent in April.

The biggest increases in November were for services, alcohol and clothing and footwear, which were all up by 0.4 percent.

However, during the month gasoline prices were down 6.3 percent and heating oil was down 8 percent.

Overall, prices for fuel and light were down 1.5 percent, housing dropped 1 percent as mortgage interest fell and transport costs eased by 1.1 percent.

The CSO said the harmonized index of consumer prices, used for comparisons with other EU states, dropped by 0.2 percent in November to an annual rate of 3.4 percent. This compares with 3.8 percent in the year to October.