Annual rate of inflation slows to 1.7%

Inflation over the last 12 months fell to 1.7 per cent, down from 1.8 per cent the previous month, according to data published today by the Central Statistics Office (CSO).

February was the sixth consecutive month the rate of inflation eased. It said the cost of consumer prices rose 0.8 per cent in February this year, down from the 1 per cent growth in February last year.

The most significant annual price rises under the Consumer Price Index (CPI) saw a 6.9 per cent increase in healthcare costs including the cost of private insurance, a 5.9 per cent rise in education expenses, and a 5.2 per cent growth in communication costs. A rise in Eircom's domestic-line rental charges drove up communication costs 2.1 per cent in February.

Alcohol and tobacco products cost 4.4 per cent more in February 2004 compared with the same month last year while the cost of visiting restaurants and hotels grew by 3.9 per cent.

The cost of clothing and footwear items decreased by 4.5 per cent over the same period. However, just for the month of February, clothing and footwear prices jumped 12.1 per cent following the end of the January sales.

Excluding tobacco products, the CPI for February was up 0.9 per cent compared with January and up 1.4 per cent in the year. Inflation in the service sector was 3.1 per cent in the month.