Ireland's annual inflation rate picked up to 0.7% in December 2018 from a five-month low of 0.6% in the previous month, mainly boosted by increases in prices of housing & utilities, restaurants & hotels and alcoholic beverages & tobacco.
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The largest upward contribution to the CPI came from: housing & utilities (4.6% vs 5.1% in November), mainly due to higher rents and mortgage interest repayments in addition to an increase in the price of electricity, home heating oil and gas; restaurants & hotels (2.1% vs 1.9%), primarily due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc. which was partially offset by a reduction in the cost of hotel accommodation; and alcoholic beverages & tobacco (2.8% vs 3.1%), mainly due to higher prices for tobacco products.
On the other hand, prices fell for: miscellaneous goods & services (-2.4% vs -2.5%), primarily due to lower health and motor insurance premiums and a reduction in prices for appliances, articles & products for personal care; furnishings, household equipment & routine household maintenance (-3.5% vs -4.1%), mainly due to the reduced cost of non-durable household goods, furniture & furnishings, household textiles and glassware, tableware & household utensils; and food & non-alcoholic beverages (-1.4% vs -2%), due to lower prices across a range of products such as meat, bread & cereals, sugar, jam, honey, chocolate & confectionery and fruit.
Annual core inflation, which excludes energy and unprocessed food, picked up to 0.3% in Decemberfrom 0.1% in November.
On a monthly basis, consumer prices were unchanged in December, after a 0.5% fall in November.
An increase in prices of transport (0.5%) and restaurants & hotels (0.1%) was offset by a decline in costs of clothing & footwear (-1.1%) and alcoholic beverages & tobacco (-1%).
The harmonised index of consumer prices rose by 0.8% from the previous year; and fell by 0.1% from the previous month. ■