Ireland: Harmonized inflation comes in at highest level since May 2024 in January
Latest reading: Harmonized inflation rose to 1.7% in January from December’s 1.0%, marking the highest rate since May 2024. Nonetheless, the print remained below the ECB’s 2.0% target. Looking at the details of the release, the increase was largely due to a lower base of comparison; inflation peaked in mid-2022 as energy prices spiked as a result of Russia’s war in Ukraine and then trended down to hit zero in September 2024 as the oil and natural gas supply adjusted. Moreover, prices for food and transport increased at a quicker rate in January.
The trend pointed down slightly, with annual average harmonized inflation coming in at 1.2% in January (December: 1.3%). Meanwhile, consumer price inflation rose to 1.9% in January from the previous month’s 1.4%.
Finally, harmonized consumer prices fell 0.75% over the previous month in January, swinging from December’s 0.92% increase. January’s result marked the weakest reading since September 2024.