The latest data from the CSO indicates that in the year to June prices have increased by 2.7%. Consumer Prices in June, as measured by the CPI, decreased by 0.1%. However, Prices on average, as measured by the CPI, were 2.7% higher in June 2011 compared with June 2010. This can be observed in Figure 1, where we can see prices slowly climbing again after they bottomed out at the start of 2010.
Table 1 Shows the underlying changes which have caused the 2.7% increase in the year to June. It can be observed that increases in the price of Housing, Water, Electricity, Gas and Other Fuels has been the largest contributor to the 2.7% increases, contributing accounting for over half of the total increase in the 12 month CPI (from June 2010 to June 2011). Following this Miscellaneous Goods and Services has also increased, contributing close to 30% of the increase in the 12 month period. Other increases in Health and Communications have been relatively small. Any of the categories which have fallen in price have seen a relatively small decreases. Clothing and Footwear saw the biggest decrease (which was only -0.17%) followed by a slight decrease in Recreation and Culture. Overall, the trend appears to be rising prices in most sectors, with only a small few sectors still seeing price decreases.
Justin Doran is a Lecturer in Economics, in the Department of Economics, University College Cork, Ireland.