Ireland: Harmonized inflation rises in June
Latest reading: Harmonized inflation came in at 1.6% in June, which was up from May’s 1.4%. The uptick was due to stronger price pressures for food and recreation, coupled with a smaller price drop for transport compared to the prior month.
The trend was unchanged, with annual average harmonized inflation coming in at May’s 1.2% in June. Meanwhile, consumer price inflation ticked up to 1.8% in June from May’s 1.7%.
Lastly, harmonized consumer prices increased 0.49% in June over the previous month, after the flat result seen in May.
Outlook: Our panelists project inflation to tick up from current levels in the remaining two quarters of 2025 due to a tight labor market and lower interest rates.
In terms of risks, an increase in geopolitical and trade conflicts could lead to higher energy and food prices. In the medium to long-term, risks include strong wage pressures and a lack of infrastructure in areas like housing, energy, water and sewage.