Annual inflation rises to 1.9% in May – flash CSO data

The annual rate of inflation increased to 1.9% in May, up from 1.6% in April, a flash estimate of the Harmonised Index of Consumer Prices (HICP) from the Central Statistics Office showed today.

The CSO said that HICP increased by 0.5% on a monthly basis, up from an increase of 0.2% in April.

The core HICP rate, which excludes energy and unprocessed food, slowed slightly to 2.5% in the year to May from 2.6% a month earlier, the CSO added.

Looking at the components of the flash reading in May, the CSO said that energy prices are estimated to have fallen by 0.3% in the month and decreased by 3.6% over the 12 months to May.

Food prices remained unchanged in the month and rose by 2.3% in the last 12 months to May, while transport costs have gone up by 1.5% in the month and risen by 7.1% compared to May last year, the CSO added.

Today’s “flash” inflation figures are from the Harmonised Index of Consumer Prices (HICP), a measure used to compare prices across the EU.

It differs from the Consumer Price Index (CPI) which remains the official measure of inflation in Ireland.

The CPI includes mortgage interest repayments which do not form part of the HICP.

Eurostat is due to publish flash estimates of inflation from the European Union tomorrow, while the CSO will publish its inflation figures for May next month.