An initial estimate for inflation, measured by the Harmonised Index of Consumer Prices (HICP), shows prices rose by 4.9% in the 12 months to August.
Today’s latest Central Statistics Office figures show that prices rose by 0.5% over the month and the annual rate was higher than the 4.6% recorded in July.
The HICP for the euro area was 5.3% last month.
Energy prices are estimated to have risen by 5.1% over the past 12 months. They are up 3.4% in the past month.
Food prices remained unchanged over the month but are up 7.7% on an annual basis.
Core inflation, which excludes energy and unprocessed food, is estimated to have increased by 4.8% over the past 12 months.
Transport costs are estimated to have increased by 0.7% in the month but are down 1.5% on an annual basis.
The flash estimate for the euro area in August will be published by Eurostat tomorrow. It is expected to be watched closely ahead of the ECB’s next interest rate-setting meeting in a fortnight.
HICP allows for comparisons of inflation across the EU. There are some differences between it and the Consumer Price Index, which is the official measures of inflation in Ireland.
One of the biggest differences is the exclusion from the HICP of mortgage interest, which is part of the CPI.
Mortgage interest has risen due to the increases in interest rates by the European Central Bank. Hence, the CPI has been higher than the HICP in recent months.