By Andrew Bushe
DUBLIN — After eight months of falling prices, inflation jumped again in December by 0.5 percent to 4.2 percent, mainly as a result of increased taxes imposed in Finance Minister Charlie McCreevy’s Budget 2002.
Figures from the Central Statistics Office showed the annual rate of inflation for the whole of 2001 was 4.9 percent, down from the 2000 average of 5.6 percent.
The main factors that led to the monthly rise were increases in tobacco and fuel prices following higher excise taxes.
The cost of home heating oil, electricity, medical fees, entertainment, education, training, hairdressing, video hire and public telephone calls were also up.
Housing costs fell as a result of lower interest rates for mortgages, but there were increases in rents in private and public accommodation, house insurance and materials for repair and decoration.
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Inflation reached 7 percent in November 2000, the country’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 2001 and then began to increase before peaking again at 5.6 percent in April.
The CSO said the harmonized index of consumer prices, used for comparisons with other EU states, increased by 0.9 percent in December to an annual rate of 4.4 percent.
This compares with 3.4 percent in the year to November 2001. In contrast, the average inflation rate for the 15 EU countries was 1.8 percent.