Inflation eases from six-year high to 4.8%

The annual rate of inflation fell back last month to 4.8 per cent as clothing goods and petrol and diesel prices eased.

The CSO's Consumer Price Index (CPI) fell 0.4 per cent from 5.2 per cent last month as consumer prices rose by 0.8 per cent in February, lower than the 1.1 per cent rise in the same month last year.

Excluding the increase in mortgage interest costs, the CPI was up 0.9 per cent last month and has increased 2.5 per cent over the last 12 months.

Following the ending of the January sales, clothing and footwear prices rose by 11 per cent, while furniture and household goods rose by 1.7 per cent.

Health care costs also rose by 0.5 per cent last month.

Over last year the most significant changes was a 22.5 per cent rise in fuel costs and a 5.4 per cent rise in the cost of alcohol and tobacco. The cost of eating at restaurants and hotel visits grew by 4.3 per cent.

In the 12 months to February 2007, the cost of clothing and footwear has fallen by 2.8 per cent and household furnishings dropped by 1.5 per cent.

Food costs rose by 0.1 per cent last month to bring the increase in food prices over the last 12 months to 1.1 per cent.

The cost of rent increased sharply in February, by 2.6 per cent, while interest payments rose by 0.8 per cent. These increases were partially offset by a decrease in natural gas prices of 10 per cent.

Transport costs rose by 0.3 per cent in the month and in the year to February 2007, down significantly from the 5.7 per cent annual increase for the same month last year. The cost of air travel rose by 12.5 per cent last month.

Excluding tobacco products, the consumer price index was up 0.9 per cent in the month and was up 4.6 per cent.

When energy products are excluded, the CPI was up 1 per cent since January and 5.1 per cent in the 12 months to February.