Irish inflation rate

Prices in Ireland increased by 1 percent in the year leading up to November 2024, according to the Central Statistics Office (CSO). This marks a slight rise in inflation compared to October, when the annual rate was 0.7 percent. The CSO tracks price changes over the past 12 months to calculate inflation.

Inflation surged in 2022, reaching 9.2 percent, primarily due to increased demand for oil and gas following the Covid pandemic, with energy prices rising further after Russia's invasion of Ukraine. Inflation remained above the European Central Bank's 2 percent target, partly driven by high food prices. Certain sectors of the economy are still experiencing significant price hikes.

The largest price increases in the year to November were in the restaurant and hotel sector, which saw a 3.8 percent rise, largely due to higher costs for food and beverages at pubs, restaurants, and cafes. Other notable price increases included a 58-cent rise in the cost of a pound of butter, an 18-cent increase for a 2.5kg bag of potatoes, a 13-cent increase for two liters of full-fat milk, and a 1-cent rise for 500g of spaghetti. Meanwhile, prices for white and brown sliced pan bread fell by 3 cents and 1 cent, respectively, compared to November of the previous year.

These figures came as the European Central Bank (ECB) announced a reduction in interest rates to 3 percent during its final monetary policy meeting of the year. Lower interest rates will make borrowing cheaper for consumers, though savers will see reduced returns. The ECB had previously lowered rates several times in 2024, from 4 percent in June to 3.25 percent in October.

Persistent inflation continues to be a challenge, and potential US tariffs could threaten Ireland's export-driven recovery,

For Irish businesses, lower interest rates will offer relief by reducing debt burdens and fostering investment,