Consumer Prices in August, as measured by the CPI, increased by 0.5% in the month. This compares with an increase of 0.7% in August of last year and as a result, the annual rate of inflation fell to 4.8%, down from 5.0% in July.
The EU Harmonised Index of Consumer Prices (HICP) increased by 0.4% in the month, compared with an increase of 0.8% in August 2006. As a consequence, the annual rate of inflation, as measured by the HICP, decreased from 2.7% in July to 2.3% in August.
There were decreases in Clothing & Footwear (-3.4%) and Furnishings, Household Equipment & Routine Household Maintenance (-1.8%).
Clothing and Footwear:
Clothing & Footwear prices increased by 5.0% in the month and decreased by 3.4% in the year to August 2007. In the month clothing prices increased by 5.8%, while footwear prices increased by 2.5%. These increases were due to the recovery in prices following the traditional summer sales.
This category also covers Clothing & Footwear services such as dry cleaning. Footwear repair & hire costs increased by 0.3% in the month and the services element for clothing increased by 0.1%.
The annual rate of inflation for Services was 8.5% in August, while Goods increased by 0.2% in the year.
The most significant monthly price changes were increases in Clothing & Footwear (+5.0%). These increases were partially offset by a decrease in Transport (-0.5%).
The main factors contributing to the monthly change were as follows:
• Clothing & Footwear increased due to the recovery in prices following the conclusion of the traditional summer sales.
Central Statistics Office Ireland
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