The annual rate of inflation rose slightly to 3.2 per cent in August as prices were increased following the end of the summer sales.
Consumer prices rose by 0.1 per cent in August ending a sequence of five months of falling inflation, Central Statistic Office figures released today show.
The most significant monthly price changes were increases in clothing and footwear (+8.7 per cent), furnishings and household goods (+1.3 per cent), and fuels (+0.7 per cent).
On an annual basis the most notable changes in the year were increases in alcoholic drinks and tobacco (+ 9.9per cent), education (+ 9.6per cent), and health (+6.7per cent).
"It's disappointing...but I still think we'll be below three percent come year-end, with the average for the year at around 3.6 percent compared to 4.6 percent last year," Mr Alan McQuaid, chief economist at Bloxham Stockbrokers, said.
Using the EU's measure of Irish inflation the annual rate stayed unchanged at 3.9 per cent compared to an EU averagge of 2.1 per cent.
Economists were little concerned about the slight uptick in inflation reasoning that the rise was down to the timing of the Summer sales. The trend internationally still points towards an easing of inflation through the remainder of the year.
According to Mr Austin Hughes, economist with IIB Bank, said he still expects Irish inflation will average 3.6 per cent in 2003 and ease to 2.5 per cent next year.
An encouraging aspect of today's figures was the further easing in insurance costs, with a continuing drop in motor insurance costs last month (-1.0 per cent) meaning such costs are largely unchanged (-0.1 per cent) on the year, Mr Hughes added.
On the other hand, doctors fees rose 1.7 per cent in the month to boost the annual increase in this area from 4.4 per cent to 5.7 per cent.