Consumer prices unchanged in March, CSO figures show

Consumer prices remained unchanged in the year to March, recovering from a decline in the previous month and ending an almost year-long negative run, new data from the Central Statistics Office showed.

March’s annual rate was the first time in 11 months the annual price change has not been in negative territory.

Prices measured by the Consumer Price Index were flat in the year to March, and 0.8 per cent higher month on month. However, much of the retail sector remains effectively closed due to Covid-19 pandemic measures, with only essential retail and online selling allowed.

The chief drivers of the annual rate were a decline in transport costs as air fares plunged, although this was offset by higher prices for cars, an increase in fuel prices and higher prices for services in respect of personal transport equipment.

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The most notable changes over the year included a decline in the price of clothing and footwear, which fell 6.5 per cent as sales took place. Communications costs were 2 per cent lower and the price of furnishings, household equipment and routine household maintenance fell by 1.5 per cent.

Those declines were offset by a rise in the cost of restaurants and hotels, where prices rose 3.1 per cent. There was also a 2.7 per cent increase in the cost of health, with dental, medical and hospital services costing more, and a rise in the price of alcoholic beverages and tobacco, which increased due to higher prices charged for wine and spirits sold in supermarkets and off licences.

The most significant price changes month on month were transport, which rose 2.1 per cent due to higher petrol and diesel prices, , and clothing and footwear, which showed a 2 per cent increase. The cost of communications fell 0.8 per cent as the cost of phone services fell.

March’s figures showed a 0.4 per cent increase in the sub index for services for the year to March, while the index for goods fell by almost 1 per cent.

Excluding tobacco, the Consumer Price Index rose 0.9 per cent month on month, and fell 0.1 per cent over the year. When mortgage interest was removed from the figures, the CPI was 0.8 per cent higher in the month, and 0.1 per cent down in the year.

Prices measured by the EU Harmonised Index of Consumer Prices (HICP) increased by 0.1 per cent compared with March 2020, and rose 0.9 per cent month on month.